A New Jersey firm is busy setting up warehouse lines-of-credit for mortgage bankers.
That firm is Rossbach Porter Consulting.
According to a news release today, warehouse lines have become much more difficult to obtain as the economic crisis hit and warehouse lenders subsequently exited the market.
The remaining lenders have boosted their net worth requirements and tightened underwriting standards.
“At the same time, correspondents are re-evaluating their warehouse relationships to meet their requirements for growth and flexibility,” the statement said. “Concurrently many mortgage brokers are becoming mortgage bankers (correspondents) in response to recent regulations and other legislative pressures.”
But Rossbach said it has successfully been arranging warehouse lines for emerging and growing mortgage bankers.
The Rumson, N.J., company reportedly identifies an “appropriate” number of warehouse lender prospects for originators then “works strategically with the correspondents to match their objectives and risk profile with the appropriate warehouse lenders.” A “compelling” financial package and business overview is prepared as part of the process of developing bids.
Rossbach said it also helps in the negotiation process.
The company recently arranged $35 million in lines for three correspondent lenders: Brightgreen Home Loans, Hartford Financial Services and Mountain States Mortgage Centers.
