A consortium of five commercial banks are working on syndicating out a roughly $300 million warehouse line of credit to a medium-sized nonbank mortgage firm in California, according to officials familiar with the deal.
The line of credit, said one official, represents a renewal of an existing line but with a $50 million increase.
The identity of the nonbank receiving the LOC could not be confirmed at deadline. Its CEO did not return a telephone call about the matter.
Prior to the mortgage/housing crisis, syndications of large warehouse lines was not unusual, but the market—especially on lines to alt-A and subprime lenders—has been slow to recover.
Many medium-sized banks that make warehouse lines place caps ranging from $10 million to $40 million on how much they will lend to one nonbank.
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