|
|
| A Colorado firm hopes to boost warehouse lending liquidity by providing a platform to help community banks enter the market.Small- to mid-sized mortgage bankers have been recently devastated by the loss of warehouse line-of-credit financing.
The situation has become so dire that the Mortgage Bankers Association sent its main man to Capitol Hill to plead for help from lawmakers. He explained that warehouse lenders are either restricting existing warehouse lines, terminating the lines or going out of business. “For the originator that depends solely on warehouse lines-of-credit, this reduction could reduce liquidity, extinguish their lending business, and adversely impact the consumers in their market, stifling the real estate recovery before it has a chance to get off the ground,” John A. Courson, MBA’s president and chief executive officer, testified on Feb. 3 before the House Financial Services Committee. JPMorgan Chase & Co. closed its warehouse lending division last month. Florida-based Popular Mortgage Corp. ended operations last month after its warehouse line was cut; Residential Loan Centers of America Inc., based in the Chicago area, shut down on Feb. 15 after it lost its line-of-credit with Countrywide; and CU National Mortgage recently notified its credit union customers that it stopped processing loan originations because, among other things, its warehouse line-of-credit was cut. In addition, NetMore America Inc. advised its brokers last month that it would scale back on refinance fundings to maintain enough warehouse capacity for its purchase business. Enter Titan Lenders Corp. The Denver-based firm said today that it launched a warehouse lending platform to help community banks and credit unions enter warehouse lending. Titan said financial institutions can replace deteriorating revenue with income earned from financing originations for mortgage bankers. In addition, the institutions will boost economic activity in their communities by providing warehouse financing to local mortgage bankers. A collateral management system is included in Titan’s offering . In addition, line reconciliation and a technology infrastructure are included. “Community financial institutions can build profitability and accelerate local economic recovery by adding mortgage warehouse line lending to their commercial offerings,” Titan said in the statement. “The platform helps regulated institutions sustain a prudent level of due diligence, compliance and profitability when offering bridge financing required by non-depository mortgage bankers.” |
