1 / 8

Current Warehouse Lending Issues

Current Warehouse Lending Issues. Presented by Michele Perrin Perrin & Associates July 9, 2009. Warehouse Lending Questions on Everyone’s Minds. Who’s still lending? Who can get a new line? What will it cost? Non-traditional sources of financing What if you can’t get a line?.

binta
Download Presentation

Current Warehouse Lending Issues

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Current Warehouse Lending Issues Presented by Michele Perrin Perrin & Associates July 9, 2009

  2. Warehouse LendingQuestions on Everyone’s Minds • Who’s still lending? • Who can get a new line? • What will it cost? • Non-traditional sources of financing • What if you can’t get a line?

  3. Who Is Still Lending? • 12 Mid-Market Lenders • Mostly “Taking Applications” • May require significant share of wallet • Some are very regional/narrow in scope • 3 Broker-to-Banker Lenders • Very expensive and restrictive • 4 Large Cap Lenders • Minimum net worth $15-30 million

  4. Who Can Get a Line? • Companies with net worth of over $15MM • Companies with deposits of over $5MM • Very successful companies with no losses • Strong alliances with correspondent investors • Companies in Chicago (!)

  5. What Will It Cost? • LIBOR floor of 2.50% or more • Margin of 2.75% or more • Some lenders have floor of 8% or more • Facility fees of .25% to 2.00% • Expect all-in effective rate of 6.00% or more

  6. Example of Warehouse Cost

  7. Non-Traditional Sources • Local Banks—especially where you do business or have a relationship • Private Equity—even friends and family • Affiliation with a credit union or bank • Buy a bank • Rob a bank!!

  8. What If You Can’t Find a Line? • Retail Originators can broker out loans—less risky, too • Use electronic delivery to investors to speed up turn times • Sell to FNMA directly on ASAP • Raise prices, decrease volume and increase margins • Switch to an honest profession!

More Related