Mid America Mortgage Inc. reports that it has expanded its relationship with Spectrum Mortgage Holdings to offer warehouse lines of credit in conjunction with Mid America’s whole loan purchase program.
This will provide sellers the flexibility to finance loans being sold to Mid America, including seasoned and “scratch and dent” loans, the lender says in a release.
“Managing aging loans and capital ratios on traditional warehouse lines of credit can be challenging for even the most experienced mortgage banker,” says Jeff Bode, owner and CEO of Mid America. “By adding warehouse financing to our established program for whole loans, Mid America is able to help other lenders address these challenges while providing a source of vital liquidity to the industry.”
To be eligible, sellers must have a loan commitment with Mid America. Spectrum will finance up to 90% of the current unpaid principal balance directly to a warehouse bank or the client upon receipt of the collateral.
“Mid America’s program will bring particular value to independent mortgage companies as they will be able to receive cash upfront while loans are undergoing due diligence,” says Michael Lima, managing director of trading for Mid America. “Having partnered with Spectrum on e-note financing for our e-correspondent division, expanding our relationship to include warehouse lines for our whole loan purchase division was the next logical step.”
