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Hard Money Wholesaler

Hard Money WholesalerMadison Equity to launch collateral-based programs

May 4, 2005


A company formed last year will provide wholesale programs for borrowers regardless of their credit score.

Madison Equity Corp. announced last week it is launching a new collateral-based wholesale program.

Credit scores can be disregarded in favor of low loan-to-values, according to documentation provided to Eligible borrowers include those in bankruptcy or foreclosure and those obtaining all cashout. Section 32 high cost loans are ineligible.

The maximum loan-to-value on loans with fully documented income is 75%, Madison said, while NINA loans have a 65% maximum.

The Gibbsboro, N.J.-based lender said online preapprovals and information about its programs will be available at when the operation commences on June 1.

Madison said its ability to fund the new business is the result of a “significant capital investment from a private investment firm.” It plans to increase its current staff of 15 by 20 “mortgage professionals” to handle growth anticipated from the new wholesale channel.

“We are well capitalized and one of only a handful of loan originators focused exclusively on the collateral-based lending market,” said CEO Jason E. Osborne in an announcement. Osborne reportedly founded the company last year and was a former director at Tribeca Lending Corp. in Manhattan.

Madison executives have collectively underwritten more than $1 billion in specialty mortgage loans, according to the announcement.

Brokers can submit loans from California, Florida, Michigan, Ohio, Pennsylvania and Texas, the wholesaler said. While Madison doesn’t have any minimum net worth requirements, brokers will need to provide three business references and may be subject to a Dunn & Bradstreet report.

The company says that, unlike traditional hard money lenders, it “offers legitimate institutional-like mortgages to end consumers.”

Sam Garcia has been in mortgage lending since 1980, and is publisher of and


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