Bank Targets Warehouse with $1.8 Billion in Commitments

In a deal being brokered through Perrin & Associates, an unidentified bank is pledging $1.8 billion in new commitments to nonbank lenders this year. Michele Perrin, president of the firm that bears her name, said she could not identify the lender at this time. She noted that she will be screening the applications to borrow. "The bank will allow both retail and wholesale lending," she said in an interview with National Mortgage News. "But you need a minimum net worth of $1 million and must be in the business for at least three years." One added benefit is that the bank will extend credit on a 20-to-1 leverage basis. Liquidity in the warehouse sector has increased dramatically the past six months but one of the largest players in the field, the former warehouse lending division of National City, is in the process of winding down all of its lines.