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| A New Jersey-based hard money lender is getting into secondary marketing.
A correspondent lending division was launched at Madison Equity Corp., according to an announcement Tuesday. Madison, which operates online at Madison-Equity.com, says it buys mortgages to borrowers with credit scores below 500 — focusing instead on collateral-based aspects. Qualified correspondents will need a minimum audited net worth of $250,000, CEO Jason E. Osborne told MortgageDaily.com. Calling the new division a “vertical integration,” he said the company will buy bulk packages up to $10 million — including aged receivables. “Smaller mortgage bankers are feeling the squeeze of rising interest rates in the form of compressed revenue margins, yet until now structural barriers have made it unfeasible for them to expand into large underserved customer segments where attractive margin opportunities exist,” Osborne said in the announcement. The Gibbsboro-based company, which says it will buy loans from mortgage bankers in 30 states, is also providing warehouse lines-of-credit up to $10 million to correspondents. Osborne said the lines include no haircut, but can only be used for loans to be funded by Madison. The 2-year-old lender launched its broker division a year ago. |
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Sam Garcia worked in mortgage lending for twenty years prior to becoming publisher of MortgageDaily.com, MortgageChronicle.com, FraudBlogger.com and CloserBlog.com. email:Â SamGarcia@MortgageDaily.com |
