An online lender, LoanDepot, announced it's taking over the servicing of loans funded by the Federal Housing Administration (FHA), Department of Veterans Affairs (VA) and the U.S. Department of Agriculture (USDA).
By leveraging ongoing investments in its servicing platform, loanDepot can "scale for operational efficiency and enhanced customer service."
“Earlier this year, loanDepot began retaining servicing for newly funded Freddie Mac and Fannie Mae loans, while laying the groundwork for Ginnie Mae Mortgage-Backed Securities,” the firm said in its statement. “The approval from Ginnie Mae to service its loans in-house carries great significance, as Ginnie Mae remains the market’s primary guarantor of securities containing FHA, VA and USDA loans.”
Significantly, Ginnie Mae has approved this move since Ginnie Mae remains the primary guarantor for securities containing FHA, USDA and VA home loans.
“Servicing our Ginnie Mae loans in-house is important for loanDepot because it enables us to provide the best-in-class care and service that our customers have come to expect – from initial consultation through servicing for the life of their loans,” said Dan Binowitz, executive vice president of servicing and capital market operations at loanDepot. “We’re relying less on third-party sub-servicing partners, which streamlines the process and allows us to work directly with our customers so we can offer the outstanding service that they expect and deserve.”