After getting into the mortgage business last year, a bank based in Texas is reporting strong growth in its warehouse lending operation.
Four months ago, NexBank launched a new warehouse lending product targeting small- and mid-sized banks, mortgage bankers and large mortgage brokers. At the time, the Dallas-based firm said it had been overwhelmed by the positive response from its existing clients.
On Monday, NexBank reported that 30 percent growth at its mortgage division during the second half of this year was fueled mostly by growth at its warehouse mortgage group.
The lender is seizing on the lack of available warehouse financing for mortgage brokers and small mortgage bankers.
NexBank President and Chief Executive Officer Davis Deadman noted in the news release that the company’s mortgage and warehouse lending divisions are among NexBank’s core operating businesses.
“We saw a void in the market, and then an opportunity for NexBank not only to fill it, but provide a greater service to our current clients,” Deadman said.
Owners have been asking to additional capacity, according to Jed Meaux, director of mortgage and warehouse lending operations. He highlighted an increase in the number of mortgage brokers who became mortgage bankers by obtaining warehouse lines-of-credit.
Meaux claims turn times are between 48 and 72 hours.
The bank established NexBank Mortgage with its July 2009 acquisition of The Funding Source. At about the same time, the Federal Deposit Insurance Corp. issued a cease-and-desist order against NexBank, SSB, requiring, among other things, a diversification in its credit concentration.
