A Michigan firm is helping mortgage bankers find warehouse and other financing.
The company, The Bank Connection, announced Tuesday that it identifies investment resources for lenders in need of warehouse financing. Fees are only charged when a deal is secured.
The Southfield, Mich., firm said it recently arranged a warehouse facility for a client that deposited $1 million to the bank. It also lined up an $0.7 million credit line at another bank for the client, who had $4.5 million in escrow deposits and $200 million in servicing rights. The client pledged his servicing rights and deposited $3.5 million at the bank.
“Many solid mortgage bankers have relied on long-term relationships with their existing warehouse lenders and suddenly they find the rug has been pulled out from under them,” stated Bob Rubin — a 35-year veteran who founded The Bank Connection.
Rubin, who spent years as a wholesale lender funding subprime and hard-money mortgages, cited figures indicating that warehouse lenders have dwindled to less than 30 from 115 at the peak. He noted that available credit could decline by as much as $600 billion without relief.
The Bank Connection claims that it knows “who the good guys are and who is up to their eyeballs with applications.”
“There remain many financial institutions still looking to connect with good borrowers,” Rubin added. “You have to be very creative in this marketplace.”
