 |
Note: The content below about broker to broker is under review and still being developed.
How a warehouse line of credit can help your company:
The fees brokers can earn are limited. This method of funding increases profitability by utilizing available a warehouse line of credit to fund your current production into the secondary market. Correspondent and wholesale lenders typically pay more for closed loans as well as charging you less fees.
Establishes a reputation for your company with consumers, builders, brokers and real estate agents to close and fund loans in your own name. The MBS Group with warehouse lending specializes in providing warehouse lines of credit to existing and emerging mortgage bankers nationwide. A warehouse line of credit is a revolving line of credit. Money is borrowed on the line and added to your bottom line with a warehouse line of credit. Learn more about the warehouse lines of credit provied by MBS. We have the cash flow and credibility needed to make the leap. This method of funding helps keep both your customers and agents content by paying for the entire transaction at the closing. We fund within 24 hours of request and in most cases, funds can be sent the same day of receipt of your information.
Your company gets to earn the interest of the note rate during the warehouse lines of credit period, which makes up for most or all of the interest that you are paying for the facility.
Brief company history with list of all loan officers
(2 Years) Corporate federal tax returns
Names of a warehouse line of credit
Quality control procedures and results of last audit
Copy of articles of incorporation and bylaws
(2 Years) Corporate audited & most recent interims & personal financial statements
Copy of E & O and fidelity bond insurance policy at $300,000 each
Banking references to included names and addresses
Since you are closing the loan in your own name, your company is exempted from RESPA to disclose the SRP's, unlike table funded transactions. No more need for the Disclosure of Service Release Premiums on the HUD-1 Settlement statement as required by RESPA.
Growth is limited without the use of a warehouse line of credit. Enables your company to grow at a faster pace.
This eliminates the worry of promised wires from your table funding lenders for a warehouse line, which rarely arrive on time. Your company gets to control the entire settlement and funding date of the loan closing.
Approval requirements required for a warehouse line of credit.
Resumes of principal officer, underwriters, etc. Correspondent application
Background check authorizations on principals
Copy of state licenses (if applicable)
FNMA, GNMA, FHLMC, FHA or VA approvals
List of secondary market investors
90-Day pipeline report for production on a warehouse line of credit
Click Here for some basic questions answered about a Warehouse Line of Credit.
|
|
