Two mortgage lenders based in the West have announced warehouse line transactions.
In a FORM 8-K filing with the SEC, E-LOAN Inc. reported it established a $150 million warehouse line with JPMorgan Chase Bank, N.A.
The variable rate on the line, which is collateralized by related mortgage loans, is LIBOR-based and expires on January 3, 2006. Pleasanton, Calif.-based E-LOAN said it is required to comply with various financial and non-financial covenants and must maintain various net worth, net income and liquidity thresholds and ratios.
Consumer Direct of America reportedly boosted its credit line by 43%.
The Las Vegas, Nev.-based mortgage banker and broker announced it expanded its warehouse financing capacity to $35 million from $20 million. The added amount provides for an unrestricted $10 million credit facility primarily for Home Equity Line of Credit type loans and special circumstance loans it chooses to bank. The other $5 million consist of a line of credit to pay "haircut" fees for loans submitted on its other warehouse banking lines.
The new credit facility was reportedly provided by Vista Capital, a division of Club Vista Holdings.
"The addition of these two credit facilities gives us a virtually unrestricted capability to bank our own loans through Vista Capital," said Consumer Direct chief executive Michael A. Barron in a written statement. "As the company continues on its acquisition strategy for mortgage brokers, these banking facilities greatly enhance and expand our product offering."