A huge financial institution and an investment banker agreed to provide new credit lines to a national home lender, while a warehouse lending consultant made a move intended help him reach more mortgage bankers.
Franklin American Mortgage Co. announced in October that it expanded its credit facilities through new agreements with Bank of America and Credit Suisse. The new credit lines were immediately available. The Franklin, Tenn.-based company said it already has a relationship with BB&T.
"This will allow Franklin American Mortgage Co., currently a top 20 lender nationally, to continue expanding all three of its production channels -- retail, wholesale and correspondent," the news release said.
The Bank Connection, which announced its launch in August to help mortgage bankers locate warehouse financing, has re-branded itself as The Business Loan Connection, founder Bob Rubin said in a statement to MortgageDaily.com. He hopes the new brand will appeal to a larger group of potential clients.
"What differentiates us from other programs are the quick turn times, rapid return on calls, no placement fees and a low barrier to entry," Rubin said in an announcement Monday. "We have located friendly professional warehouse banks that are trying to grow their portfolios."
Rubin claims that there are only around 10 active warehouse lenders remaining, and they cater to originators with a net worth of more than $30 million.
Bank of Commerce Mortgage is able to avoid warehouse lenders by looking to its parent, Bank of Commerce Holdings, to fund a significant of number of its home loans, a spokeswoman for the firm told MortgageDaily.com in a statement. The company, based in San Ramon, Calif., reports $1 billion in annual fundings.
A pilot program between Freddie Mac, warehouse lender NattyMac and California-based mortgage banker Provident Funding Associates LP was likely to be introduced to more lenders by Freddie and its government-controlled cousin Fannie Mae, the Wall Street Journal recently reported -- citing people familiar with the plans. Freddie reportedly provides commitments on Provident loans to NattyMac, which verifies that Freddie's quality standards have been met on the loans and provides warehouse financing.