diff --git a/lib/connectors/mail.js b/lib/connectors/mail.js
index 1e9b346a..3e6e0d39 100644
--- a/lib/connectors/mail.js
+++ b/lib/connectors/mail.js
@@ -59,10 +59,17 @@ MailConnector.prototype.setupTransport = function(setting) {
   connector.transports = connector.transports || [];
   connector.transportsIndex = connector.transportsIndex || {};
 
-  var transportModuleName = 'nodemailer-' + (setting.type || 'STUB').toLowerCase() +  '-transport';
-  var transportModule = require(transportModuleName);
-
-  var transport = mailer.createTransport(transportModule(setting));
+  var transport;
+  var transportType = (setting.type || 'STUB').toLowerCase();
+  if (transportType === 'direct') {
+    transport = mailer.createTransport();
+  } else if (transportType === 'smtp') {
+    transport = mailer.createTransport(setting);
+  } else {
+    var transportModuleName = 'nodemailer-' + transportType + '-transport';
+    var transportModule = require(transportModuleName);
+    transport = mailer.createTransport(transportModule(setting));
+  }
 
   connector.transportsIndex[setting.type] = transport;
   connector.transports.push(transport);
diff --git a/test/email.test.js b/test/email.test.js
index 325330a0..690ed1c2 100644
--- a/test/email.test.js
+++ b/test/email.test.js
@@ -1,6 +1,30 @@
 var loopback = require('../');
 var MyEmail;
 var assert = require('assert');
+var MailConnector = require('../lib/connectors/mail');
+
+describe('Email connector', function () {
+  it('should set up SMTP', function () {
+    var connector = new MailConnector({transports: [
+      {type: 'smtp', service: 'gmail'}
+    ]});
+    assert(connector.transportForName('smtp'));
+  });
+
+  it('should set up DIRECT', function () {
+    var connector = new MailConnector({transports: [
+      {type: 'direct', name: 'localhost'}
+    ]});
+    assert(connector.transportForName('direct'));
+  });
+
+  it('should set up STUB', function () {
+    var connector = new MailConnector({transports: [
+      {type: 'stub', service: 'gmail'}
+    ]});
+    assert(connector.transportForName('stub'));
+  });
+});
 
 describe('Email and SMTP', function () {
   beforeEach(function() {