Third Party Origination

Fahe blog icons-01Fahe is proud to announce that our first Third Party Origination (TPO) loan through Fahe’s mortgage branch, JustChoice Lending (JCL) and Chase Bank was submitted by Frontier Housing with Kelly Fleck as the originator.  Keith Manning was the applicant and he purchased a home in Morehead, Kentucky.  The loan closed on October 28th and was purchased by Chase on November 16th.

The reason that we are so excited by this loan is that Fahe is the only nonprofit lender in existence working with Chase utilizing third party origination.  Third party originations involve a lender that assumes the responsibility of the loan, and a broker that works directly with the client and works as an extension of the lender to connect the client with a mortgage loan.

Fahe members and other partners who have a licensed originator and processor are eligible to become mortgage brokers with JustChoice Lending.  Since many members of the Fahe network are located in remote areas of Appalachia that do not have access to traditional lending institutions, becoming a broker allows these members to provide a much needed service.   The unique partnership between Fahe and Chase allows JustChoice Lending to offer better rates and the ability to close a higher number of loans.   By becoming a broker, the member or partner generates revenue for their organization which allows them more capacity to serve their clients.  While the brokers process the loans, and perform verifications, JCL performs the underwriting and closing duties.

We expect that with the incentive of earning extra money per loan, the availability of better rates, and the ability to help more people and families, more organizations across the Fahe network will choose to become brokers.  Our Third Party Origination status with Chase Bank becomes a win-win-win for Fahe, our members, and the people of Appalachia whom we serve.