In the face of falling industrywide mortgage production, one nonconforming lender plans to use a recently obtained warehouse line-of-credit to double production over the next year.
CoreStar Financial Group announced Tuesday that it obtained a $20 million financing facility from Countrywide Warehouse Lending.
"We already have a wonderful relationship with Countrywide and look forward to expanding the synergy between the two companies as we move forward with this new credit facility," CoreStar CEO Tomas Gordon said in the statement. "Our average customer consolidates over $20,000 of consumer debt and saves over $400 on their monthly bills."
Terms of the line were not disclosed.
The Timonium, Md., company said it also has lines with HSBC Mortgage Services and CitiGroup subsidiary First Collateral Services.
CoreStar, which is just 2 years old, says it specializes in consumer debt consolidation through refinance transactions.
Homebuilder Technical Olympic USA, Inc. announced its mortgage lending subsidiary, Preferred Home Mortgage Company, entered into a one-year $100 million mortgage warehouse credit facility with an accordion feature that allows for an additional $50 million expansion.
While Hollywood, Fla.-based Technical Olympic did not say who provided the warehouse line to the subsidiary, it did note in the same announcement that it obtained a $600 million unsecured revolving credit facility from a consortium of 16 lenders led by Citicorp North America, Inc. and Deutsche Bank Securities, Inc.