Lenders may enter into correspondent arrangements with third party originators, but the following restrictions apply:

1. There can be no increase in fees.  The allowed fees to the borrower must be split between the Certified Lender and the Correspondent.

2.  All loans close in the name of the Certified Lender. Loans may not be closed in the name of the Correspondent and then be sold to the Certified Lender.

3.  The Certified Lender must make all reservations in the Lender On Line system. The Certified Lender may not provide a password and access to the LOL system to anyone other than their own employees

4.  The Certified Lender is responsible for ensuring that all underwriting is in compliance with a secondary market standards and guidelines for FHA, VA, RD or Fannie Mae loans.  In the event that the Correspondent incorrectly underwrites a loan and repurchase of the loan is necessary, it will be the responsibility of the Certified Lender to repurchase the loan.

5.  A Correspondent is not an approved MHDC lender, and may not advertise or represent themselves as such.  The Correspondent will not be listed on the MHDC website as a Certified Lender.

6.  It will be the responsibility of the Certified Lender to perform all training needed by the Correspondent’s staff.