Do you need correspondent lenders?

Correspondent lenders are similar to mortgage bankers in that they make the lending decision and fund the loan with their own money or credit line. The third alternative, correspondent lenders, combines the best features from both groups. It's the best of both worlds for you as a borrower. However, as soon as a loan has closed, it's sold to another lender at a previously negotiated price. You'll be dealing with the banker who is funding your loan, yet that banker is able to shop your mortgage around, which can obtain you a correspondent lenders lowest interest rate.

Correspondent lenders are usually operating on a regional basis, and it can be hard to tell whether a lender is a broker or a banker, based solely on the company's name.
Correspondent lenders can sometimes be difficult to find, since they're generally smaller institutions.