A New York-based bank has started a mortgage warehouse lending business.
The bank is Sterling National Bank, a $2 billion institution founded in 1929.
Parent Sterling Bancorp said in a news release yesterday that Sterling Warehouse Lending Group will “serve the financing needs of the residential mortgage banking industry.”
According to the statement, the new business will target established, “highly qualified mortgage banking firms.”
The warehouse lines-of-credit will be used to fund conforming mortgages and loans insured by the Federal Housing Administration.
“Warehouse lending is a natural extension of our business, drawing upon Sterling’s demonstrated strengths in both asset-based financing and mortgage banking,” Sterling Bancorp Chairman and Chief Executive Officer Louis J. Cappelli said in the statement.
Gary Timmerman was named senior vice president and senior managing director of Sterling Warehouse Lending Group.
“Warehouse lending has historically been a successful product for a number of banks,” Timmerman said in the statement. “As the housing market has now begun to show signs of stabilizing, we see an opportunity to apply Sterling’s capital, experience and market knowledge to fill this financing need and generate solid returns on our investment in the warehouse business.”
While a spokesman indicated no Web site is yet available for the warehouse division, the bank is online at www.sterlingnationalbank.com.
The spokesman did indicate, however, that new business inquiries should be directed to [email protected].
