Banks, credit unions, brokers and nonbank lenders, mapped side by side
Who keeps the loan: portfolio and correspondent lending
On the map
A portfolio lender keeps some loans on its own books instead of selling them, so it can set its own guidelines for those loans. A correspondent lender closes loans in its own name and then sells them to a larger investor under pre-agreed rules. Portfolio lending often matters for unusual income, properties or loan sizes.
Last reviewed against the primary sources listed below.
When portfolio lending comes up
- Large loans above the conforming limit.
- Unusual properties or mixed-use buildings.
- Self-employed or irregular income.
Correspondent lending
The correspondent underwrites and closes the loan, then sells it. To you it looks like a direct lender; servicing may move after sale.
Common questions about where to apply
What is a portfolio lender?
A lender that keeps some loans it makes rather than selling them, allowing its own guidelines for those loans.
Is a better mortgage a lender or a broker?
Neither label tells you which offer is better. Compare Loan Estimates for the same loan from each.