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Warehouse Lines of credit(MBSD) - Austin, Texas Consulting Services
helping your business with Warehouse Lines taking your business to another level  
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CLICK HERE TO FIND OUT HOW WE CAN HELP YOU WITH A WAREHOUSE LINE OF CREDIT. Need a warehouse lines of credit? Mortgage Banking Solutions can help.


Note:
The content below about broker to broker is under review and still being developed.


MBS WAREHOUSE LINES

  • who are seeking their first warehouse lines facility
  • who are making the transition from mortgage broker to mortgage banker
  • who are seeking additional warehouse capacity
  • who are seeking diversification in warehouse facilities providers
  • who require warehouse facilities of up to $15 million
  • who require larger, syndicated facilities for the aggregation of a warehouse line for pooling or securitization

Getting Started
The conversion of your warehouse lines
business model doesn’t change overnight. The mortgage industry is relationship-based, and the path to becoming a banker or becoming a banker with greater control and flexibility is made smoother with the right people in place. Seek out like-minded investors with loan programs that appeal to you, and who are willing to support you and your business. In addition, surround your new business with closing agents, document preparation companies, and third-party mortgage insurers with whom you can work closely. The right people guiding and supporting your work will make the change both pleasant and profitable.

If you are willing to roll with the changes and risks, increasing your mortgage banking production may be the next logical step for you and your company is with a warehouse line of credit.

  • Access to capital, allowing for greater growth potential
  • Advantageous correspondent pricing
  • Increased flexibility in product offerings
  • Greater control over the funding process
The opportunities to be in more control, manage large funding volumes, and work with a broader array of customers are just some of the reasons brokers are making the switch.

Some brokers capitalize on the warehouse lenders knowledge and experience of others by joining forces with an existing mortgage banker or acquiring an existing mortgage bank. Others, though, have learned about an alternative route to bankership—obtaining and managing a warehouse line of credit. However, securing warehouse lines is often one of the largest hurdles in transitioning from broker to banker.

Most warehouse lenders will evaluate your warehouse lines of credit based on the “four Ps”—People, Processes, Portfolio, and Profits. Whether you are becoming a banker, or you are a banker looking for greater control and flexibility, the following are some tips on how to prepare your business so you can more readily obtain a warehouse line.

Your People
You can expect your prospective warehouse lender to conduct a full management assessment. They’ll look at how long you have been in business and whether you and your partners or senior managers have the expertise and experience necessary to become a banker. Expect to have a thorough review conducted on the financial health of your company as well as yourself and other senior managers. The lender may use references you provide, as well as other sources, such as reports from Dun & Bradstreet, LexisNexis, MARI, and Affinity. Personal credit reports are also fair game. Be aware that it may be difficult to get a line if you or any of your partners have declared bankruptcy, or have worked for a company that ran into financial difficulty.

Your Processes
Like any new business, you should start by developing a business plan. A key component of this plan should include the processes that you will put in place to manage risk. Do you have an experienced staff or vendor to do your post closing, shipping, quality control, underwriting, closing, and document preparation? Do you have policies in place for your secondary marketing? Adequate insurance coverage? What is the quality of your loan inventory?

A component of your processes should include technology, such as Del Mar Database’s DataTrac solution. Many warehouse lenders (including GMAC Residential Funding) have robust software technology to help with the management of your warehouse line of credit. As a result, they value companies that recognize and embrace the efficiencies inherent in managing information with technology.

Your Portfolio
Your warehouse lender will want to know where the loans on your line are going, and which investors list you as an approved client. They will also look at the geographic distribution of your business, your delinquencies, and your valuation.

Your Profits
A prospective lender will thoroughly analyze your income statement for profitability and your balance sheet, looking at your assets, amount and type of liabilities, and net worth. Your financial ratios are also critical. The MBS Group with warehouse lending specializes in providing warehouse lines of credit to existing and emerging mortgage bankers nationwide. A warehouse line of credit is a revolving line of credit. Money is borrowed on the line and added to your bottom line with a warehouse line of credit. Learn more about the warehouse lines of credit provied by MBS. We have the cash flow and credibility needed to make the leap. Most warehouse lenders look for a tangible net worth of not less than $1 million, a leverage ratio (total debt to net worth) of less than 20:1, and liquid assets you possess.

Whether you're a broker making the transition to a banker, or a banker looking for greater control and flexibility, initiating or extending a relationship with a warehouse lender can give you a competitive edge in meeting your loan origination goals.

There are many competitive warehouse lines and programs available today that can help you achieve significant growth potential. Consider the important ways in which a warehouse line can benefit your business:

        

1 Program Features and Program Requirements are determined on a case-by-case  basis and are subject to change at any time at the discretion of the specific Warehouse Lines.
2 Advance Rates are determined on a case-by-case basis and are subject to  changes in market conditions.
3 Same-day funding is available at an additional cost.
4 Dwell time for any loan funded through the facility is subject to the discretion of WarehouseOne's management and may be subject to additional fees or discount or both.
5 Audited Financials for warehouse lines may or may not be required but are always preferred. 

Click Here for some basic questions answered about Warehouse Lines of Credit.

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