Prospective borrowers often submit loan requests directly to lenders. However, commercial loan requests can also be submitted through another channel in which a permanent lender agrees to purchase loans or consider loan requests from a mortgage banker or broker. This type of business relationship is more commonly referred to as a(n):

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A correspondent relationship is a business relationship in which a permanent lender agrees to purchase loans or consider loan requests from a mortgage banker or broker. This allows the mortgage banker or broker to act as a correspondent on behalf of the lender in facilitating the loan process. This type of relationship helps lenders to reach borrowers who may not have direct access to their products and expands the lenders' reach.

Prospective Borrowers Often Submit Loan Requests Directly to Lenders