How to qualify for Warehouse lines of Credit

Warehouse Lines Of Credit

(MBSD) Offers Warehouse Lines Of Credit

(MBSD) Featured Benefits And The Clear Solution To Your Business:
Establishes a reputation for your company with consumers, builders, brokers and real estate agents to close and fund loans in your own name. We fund within 24 hours of request and in most cases, funds can be sent the same day of receipt of your information. This method of funding helps keep both your customers and agents content by paying for the entire transaction at the closing.

Correspondent and wholesale lenders typically pay more for closed loans as well as charging you less fees. The fees brokers can earn are limited. This method of funding increases profitability by utilizing available Warehouse Lines to fund your current production into the secondary market.

No more need for the Disclosure of Service Release Premiums on the HUD-1 Settlement statement as required by RESPA. 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.

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.

Your company gets to control the entire settlement and funding date of the loan closing. This eliminates the worry of promised wires from your table funding lenders, which rarely arrive on time.

Enables your company to grow at a faster pace. Growth is limited without the use of warehouse lines of credit.

Below is a brief explanation of the funding process between our company and the mortgage correspondent. In order to start the mortgage funding process with the mortgage company, proper documentation must be sent to us prior to funding each individual loan.

Request for purchase detailing summary of transaction from mortgage company.

Required documents to fund:

Completed loan application (Form 1003)
Appraisal - first two pages
Firm Commitment by D.E. Underwriter (FHA), VA Loan Analysis by VA Automatic Underwriter (VA), Investor Underwriter, LP or DU approvals from authorized channels (FNMA, FHLMC)
Copy of Borrower's credit report
Insured closing letter in the name of the originator from the title company
Wiring instructions
Copy of hazard insurance policy or binder of coverage
Flood certification
Mortgage insurance or guaranty, certificate of eligibility (if applicable)
Purchase commitment from investor - investor lock

Funds are wired directly to the closing agent along with specific funding instructions.

Closing agent is to fax a copy of the signed note on the date of the closing, and overnight the following documents to us within 24 hours.

Original signed note
Certified copy of deed of trust
Copy of title commitment
Copy of HUD-1
Copy of Truth-In-Lending

Original signed note is to be sent directly from the closing agent back to the bank. The note is to be endorsed in blank.

Original Assignment of Deed of Trust in blank, plus the assignment to investor is sent with the note to us. We hold the assignment until the note is paid and then returns it to the mortgage company for recording the original assignment to the investor.

Upon receipt of note and assignment from the closing agent, a bailee letter is prepared and is sent with the note to the investor for payment.

We book the loan at the negotiated rate for warehouse lines of credit.

Funds will be wired to us from the investor.