Mid America Mortgage, Inc. has expanded its relationship with Spectrum Mortgage Holdings, LLC to include warehouse lines of credit in conjunction with its Whole Loan Purchase program, the company announced.
Mid America said the expansion will give sellers the flexibility to finance loans being sold to Mid America, including seasoned and “scratch and dent” loans.
“Managing aging loans and capital ratios on traditional warehouse lines of credit can be challenging for even the most experienced mortgage banker,” Mid America CEO Jeff Bode said in a release. “By adding warehouse financing to our established program for whole loans, Mid America is able to help other lenders address these challenges while providing a source of vital liquidity to the industry.”
For eligible sellers, Spectrum will finance up to 90 percent of the current unpaid principal balance directly to a warehouse bank or the client upon receipt of the collateral.
“Mid America’s program will bring particular value to independent mortgage companies as they will be able to receive cash upfront while loans are undergoing due diligence,” said Michael Lima, managing director of trading for Mid America. “Having partnered with Spectrum on eNote financing for our eCorrespondent division, expanding our relationship to include warehouse lines for our Whole Loan Purchase division was the next logical step.”