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The Warehouse Line

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Warehouse lines are the life blood of a traditional mortgage banker, and they’ve been hard to come since the financial crisis. But some warehouse lenders have been promoting their programs with a focus on one niche or another.

Fidelity Bank claims that it is one of the most adept players in the complex mortgage warehouse funding world. Its Mortgage Warehouse Program was established more than 25 years ago.

The “mortgage company retains substantial control over its funding and closing process,” promotional material from the Edina, Minn.-based company says. “Non-captive facilities allow the mortgage company to sell to a wider range of correspondent investors.”

Information about Fidelity’s warehouse programs is online at .

Although the availability of warehouse lines has somewhat improved recently, opportunities for small and mid-sized mortgage brokers and originators still need to be expanded, according to Stanley Street, founder and president of Street Resource Group Inc. The Washington, D.C.-based company claims to be the leading provider of warehouse lending software.

Street’s firm, which is located online at www.StreetResource.com, specializes in servicing a broad base of lenders with low volume — keeping warehouse lines of credit flowing to small and mid-sized mortgage bankers.

“Today’s mortgage bankers are unable to grow without liquidity, and that liquidity is provided by warehouse lenders — you cannot have one without the other,” Street said. “When there is a scarcity in warehouse funds, there is a limited availability of credit to the marketplace. This reinforces the concentration of mortgage business by large banks and lenders and limits the mortgage financing options for consumers.”

A web page set up by AnikimCreditCorp.com explains warehouse lines for mortgage brokers and mortgage bankers and provides details about applying for a line. The page is located at www.anikimcreditcorp.com/warehouse-lines.

Morgan Stanley Bank, N.A., provided a $200 million revolving credit facility to PennyMac Financial Services Inc. last year, according to a filing with the Securities and Exchange Commission. The line is priced at LIBOR plus a small margin, and the loan repo facility is committed for a period of 364 days.

First Guaranty Mortgage Corp. launched a pilot warehouse program for mortgage brokers and small mortgage bankers last summer. Then, in October, it named Ken Jones senior vice president in charge of warehouse lending.

Credit Union Times previously reported that REMN Wholesale is providing warehouse lines to credit unions. The Iselin, N.J.-based company claims it is a good fit for credit unions since it is not a bank that can sell other financial services products to credit union customers.

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