Warehouse lines with bankers

Warehouse lines of credit for bankers

Nowhere has the notion of change been felt more dramatically than our industry's unprecedented dependence on the independent, autonomous mortgage originator as a source for mortgage product like warehouse lines of credit. Is this the right time for you to start on the road to becoming a mortgage banker? A thoughtful measure of the pros and cons will provide an answer.

An impressive example of this transformation is the ability of even modestly sized originators to achieve correspondent status - and the accompanying premiums - provided they have the means to fund and close loans in their own name. One very significant consequence of this recently formed dependence is that warehouse line opportunity once reserved for a privileged few are now accessible to a far broader spectrum of the mortgage origination community than would have ever been thought possible only a few years ago.

As the traditional middle-market mortgage bankers have been either bought, merged or acquired by the large national conduits, warehouse lenders are keenly aware of the increasingly significant role that smaller, independent originators are playing in generating both commercial and residential mortgage loans.

As the millennium approaches, increasing numbers of brokers are heeding the call and becoming bankers by obtaining warehouse lines of credit. Competition for MBSD warehouse outstandings is fierce and consequently, this long-neglected segment of the origination market has become the latest battleground for warehouse lenders.

As warehouse lines is a pre-requisite to making this step it needs to deliver the benefits - as promised - once you sign on the dotted line. The purpose of this article is therefore to highlight the critical issues that should be given consideration prior to making a decision to step from broker to banker.