A 39% boost in its financing capacity paves the way for Delta Financial Corp. to increase annual production by a quarter.
The Woodbury, N.Y.-based company announced Wednesday that it obtained a $350 million committed warehouse line of credit from Bank of America -- pushing its total funding capacity up to $1.25 billion.
"The increase in financing capacity provides us with additional liquidity to continue our goal of growing loan originations," said Hugh Miller, Delta president and CEO, in the announcement. "We remain confident in our previously stated loan origination guidance, and expect to achieve at least 25 percent growth in our 2005 loan origination volume over our 2004 level $2.6 billion."
The total committed warehouse line comes from four separate credit providers and has financing costs as low as 50 basis points over the one-month LIBOR rate, according to the announcement.
Delta says it originates nonconforming mortgage loans primarily in 29 states through a network of approximately 2,300 independent brokers and 11 retail offices.