This site uses cookies to improve your browsing experience, gather site analytics and activity, track shopping cart contents, and deliver relevant marketing information.
View our privacy policy and manage your settings here. By using our site you agree to these terms.

Frequently Asked Questions

Mortgage LLC Home  |  FAQs  |  Owner Banks  |   Secondary Market Investors

  

Does our bank have to be an ABA member in order to become an owner?
  • Yes. ABA Community Bank Mortgage LLC ownership is open to all ABA members. Your bank would need to join the ABA as a member before buying in.
How does our bank become a ABA Community Bank Mortgage LLC owner?
  • When a bank has determined that it would like to become a ABA Community Bank Mortgage LLC owner, we will forward you an Offering package. The package contains all of the operating documents for the ABA Community Bank Mortgage LLC, such as the by-laws and Operating Agreement as well as all buy-in materials. The bank typically performs a legal review of the package. In many cases, banks also start the approval process with our investors while reviewing the Offering package. When the bank is comfortable with the documents, they return a fully executed original set of documents to ABA Community Bank Mortgage LLC, along with their buy-in fee, and at that point become a ABA Community Bank Mortgage LLC owner.
What is the cost to buy in?
  • There is a one-time buy-in fee that is based on the bank's asset size. (The amount can be obtained by signing a ABA Community Bank Mortgage LLC Non Disclosure Agreement and can be requested through the contact form available on this website.)
Does ABA Community Bank Mortgage LLC buy the loans we originate?
  • No. Currently all loan production from the existing owner banks is sold directly into Penny Mac on a correspondent basis.
Are all loans sold as closed loans?
  • Yes. ABA Community Bank Mortgage LLC is currently set up for owners to sell closed loans directly into Penny Mac as approved correspondents.
What are the benefits to our bank in becoming an owner?
  • ABA Community Bank Mortgage LLC owner banks receive a monthly bonus payment that is tied to each bank's funded volume, and the amount of the monthly bonus is a function of the aggregate volume sold by all owners into each investor affiliate.
  • Owner banks are also eligible for periodic profit distributions from ABA Community Bank Mortgage LLC as well.
  • Bankers have opportunities to participate in overall strategic planning for ABA Community Bank Mortgage LLC through appointments to the Operating Committee and Board of Directors, as well as various peer group discussions.
  • Owner banks also have the opportunity to further develop the value proposition of ABA Community Bank Mortgage LLC by utilizing the power of collaboration in securing ongoing pricing advantages for community banks.
Can I see live pricing?
  • Yes. All ABA members are required to sign a Non Disclosure Agreement prior to viewing live loan-level pricing and benefits information. Current ABA Community Bank Mortgage LLC owners receive correspondent pricing directly from Penny Mac.
Are there other benefits available?
  • The ABA Community Bank Mortgage LLC management and Directors are actively engaged in negotiations to add additional loan sale options for owners as well as expanding our menu of ancillary products and services.
Is our bank's mortgage subsidiary eligible for participation?
  • Yes, as long as the parent company is an ABA member.
Are there monthly dues or fees required with ownership?
  • No. ABA member banks pay a one-time buy-in fee to join.
Can my bank broker loans through the ABA Community Bank Mortgage LLC?
  • No. ABA Community Bank Mortgage LLC is available for correspondent whole loan sales into Penny Mac. Execution options include best efforts, single-loan and bulk mandatory, and owners can also sell loans on a prior-approval basis.
Can I sell loans through ABA Community Bank Mortgage LLC on a servicing-retained basis?
  • No

Submit contact form to learn more about the ABA Community Bank Mortgage LLC.

Questions? Please contact Debbie Whiteside for more information.