New warehouse lines of credit page on MBSD

New MBSD website has great warehouse lines of credit

Warehouse Lines of Credit:

Existing warehouse lines of credit

The proposed HUD ruling will require mortgage brokers to fund loans on a warehouse line in order to earn yield-spread premiums. MBSD can assist qualified mortgage brokers in obtaining warehouse lines. MBSD realizes, however, that such warehouse lines of credit are like loaded guns: without the proper systems and procedures for timely sale of loans, the company could easily shoot itself in the foot. MBSD will work with the company to ensure implementation of systems and procedures that ensure efficient utilization of the line and maximal profit margins.

When a company's warehouse lines of credit are maxed out, that company can't grow. This problem has one of two origins: either the company is experiencing poor warehouse utilization (that is, not turning the line a sufficient number of times in a month) or the company's leverage ratio has exceeded the credit provider's limits. MBSD is frequently called upon by

• mortgage lenders to overcome the origins of inefficient warehouse utilization and


• warehouse lenders to assist their customers in improving loan sale processes in order to improve warehouse utilization.
  
  MBSD first reviews internal issues that may be inhibiting increased funding capacity before pursuing additional warehouse lines. If it is determined that additional lines are necessary, MBSD knows the major warehouse lenders and can help negotiate favorable terms, usually better than if the company were to do so directly.
  
  For more mature companies, gestation and/or repo lines may be a solution. MBSD can assist in finding and establishing these types of warehouse lines of credit.
  
  New warehouse line of credit page on the MBSD group website