A new program from a Florida-based, warehouse-line provider enables mortgage bankers to finance originations on a "long-term" basis.
Warehouse PLUS Line, a long-term funding alternative to traditional warehouse lines, was announced by Bayview Financial.
The program, touted online at www.WarehousePlusLine.com, "was developed to give financial institutions and specialty lenders direct access to the securitization market in a cost-effective manner," Stuart Waldman, a Bayview managing director, said in the statement. "Since 2000, Bayview Financial has completed more than 50 of these transactions -- some with repeat sellers -- representing a total funding of more than $1.1 billion."
The Miami-based lender said each individual funding is structured as a sale of loans, but the originator "receives the economic benefit equivalent to all income less the agreed upon financing rate."
Subprime, stated-income, high loan-to-value and asset-based loans are eligible for permanent warehouse funding, according to the announcement. Non-performing loans can also be financed.
No personal guarantees are required on the non-recourse line, the $9 billion company noted.