New Service Aids Entry Into Warehouse Lending

Posted by Orb Staff on May 13, 2009 No Comments
Categories : Residential Mortgage

ge Warehouse Network has launched what it says is a first-of-its-kind turnkey solution that includes the back-office operations, systems and personnel that banks need to establish and maintain warehouse lines quickly and economically. With the ready-to-deploy solution, banks have the ability to fund their first loans within 60 days of signing up, according to Mortgage Warehouse Network, which provides the systems, policies, procedures and human capital required to initiate and maintain a warehouse line, in addition to providing financial modeling and managing ongoing credit analysis. "We are essentially boarding single-family mortgage loans at a discount for an average of 15 days," says Jeff White, chief operating officer of Mortgage Warehouse Network. "A lot of banks are interested in entering the warehouse lending space, but simply don't want to go through the time, hassle and financial commitment of creating an entirely new division." Mortgage warehouse lines provide banks with an opportunity to earn high returns on short-term investments on single-family mortgages while leveraging under-utilized equity. "From a risk standpoint, the warehouse lending business is now one of the best businesses a bank can be in because the industry is only funding safe, pre-approved agency paper," adds White. SOURCE: Mortgage Warehouse

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