Correspondent Approval
5th Street Capital must underwrite all loans, correspondent draws docs and funds, 5th Street Capital will purchase the closed loan
Overview of Correspondent approval requirements:
- Minimum Net Worth of $1,000,000 (exceptions made case by case for experienced firms)
- Company Formation and DBA Registration document to be reviewed to verify applicant is in “good standing” with all governmental licensing and revenue collection agencies and has a clear public record
- Licensing by the proper governing authority, be registered in NMLS and be authorized to originate loans
- Most recent business tax return and YTD P&L signed by a principal
- Balance Sheet to support net worth requirement
- IRS Form W-9 – Must be completed, signed and dated by a corporate officer, member, partner or proprietor
- Quality Control Policies & Procedures – If outsourced, provide agreement with vendor
- Compliance screening, including MLO Compensation, S.A.F.E. Act, Appraiser Independence, and Fair and Responsible Lending
- Ability to collect and service borrower first payments and comply with RESPA requirements
- Be a Mortgage Electronic Registration Systems, Inc. (MERS) member
- Maintain at least two warehouse lines of credit or funding source acceptable to 5th Street Capital, Inc. (Financial institutions are exempt from this requirement if the institution uses its own funds for financing)
- Residential Mortgage Loan Origination Agreement & Zero Tolerance signed by a principal
- Resume(s) of all Owners/Principals/Officers and Key personnel – to support 10+ years industry experience
- Corporate Resolution – Only applicable for Corporations (must be signed by an authorized person)
- References –provide 3-5 investor, lender, warehouse or MI company references
- Errors and Omissions Insurance and Fidelity Bond with minimum coverage of $500,000 each
We employ the resources of Comergence Compliance for all Wholesale Approvals. Please contact us, email sales@5thstcap.com or call 888-702-3385 to get started!
