Mortgage Industry News

by: Ruth Lee, EVP Sales, Titan Lenders Corp

There has never been greater demand or a clearer path for community banks to become a dominant force in the mortgage lending industry.  Non-depository mortgage bankers and their third-party originators sustained a devastating blow to their reputation and are being held accountable in ways that their business models were not meant to support. Community banks not only have the presence, footprint and liquidity to absorb mortgage lending demand, but also they are the preferred source of mortgage loans for most consumers.

This evolving dynamic promises to create an unprecedented community bank/mortgage banker relationship that will transform the mortgage lending transaction and stabilize the risks that have been accepted as “part of doing business.”

Read the full article in TLC’s Progress in Lending column: A Bit of TLC

NexBank of Dallas’ launch of a $100 million mortgage warehouse lending division, offering lines of credit of up to $10 million to non-depositories, illustrates the evolving relationship between community banks and mortgage bankers (www.progressinlending.com/a-bit-of-tlc). Characteristic of a regulated institution, NexBank of Dallas warehouse lending guidelines are conservative, with lines of credit limited to mortgage bankers with a net worth of at least $1 million. Targeting NexBank mortgage brokers who are trying to become bankers, NexBank says it will consider lower net worth requirements on a firm by firm basis. TLC’s William Null (william.null@titanlenderscorp.com) is an expert on how community banks and mortgage bankers are collaborating in new ways.