NCWR provides training and support to new mortgage bankers, according to Rost.
When considering potential candidates for warehouse lines, NCWR looks at a broker's motivation, volume and quality-control processes, Rost says.
NCWR doesn't have a specific net-worth requirement for new correspondents, he says.
NCWR performed substantial research "looking for some correlation between net worth and risk or loss, and we really did not find one," Rost says.
Taking that approach gives more flexibility to NCWR when it considers new warehouse customers, he says.
NCWR doesn't use leverage ratios in determining warehouse lines, Rost says.
NCWR funds a broad spectrum of loan products, including prime, alternative-A, government, subprime and second mortgages, he says.
NCWR approves correspondents that use outsource companies, and Rost sees the percentage growing of emerging bankers that outsource all or some of the lending functions.
Over the last two years NCWR has seen more brokers looking to convert to bankers, Rost says.
A typical customer for NCWR has about a $7.5 million warehouse line, and some have more than $20 million, Rost says.
"You can get all kinds of opinions on the future of mortgage brokers," says NCWR's Rost.