First California Mortgage Company (First Cal) has announced that it has received $30 million in new warehouse funding from Flagstar Bank. This raises to $110 million the amount of new warehouse funding that First Cal has raised since Jan. 1, 2010. The credit facility will enable First Cal to fund agency, non-agency and Federal Housing Administration (FHA) and U.S. Department of Veterans Affairs (VA) loans. “Flagstar Bank’s commitment to expand warehouse lending is good news for consumers and our business partners,” said Christopher K. Hart, president of First Cal. “As a result of this additional credit capacity we will be able to fund an additional 3,000 home purchase and refinance loans in 2010, boosting our production capacity by an additional 40 percent.”
Warehouse credit facilities create liquidity in mortgage lending. This is critical for borrowers as liquidity creates competition and choice, helping to maintain affordability in home financing. Warehouse credit increases First Cal’s total lending capacity by providing short-term financing to bridge the time between loan funding and the eventual sale of a loan to an investor like Flagstar Bank.
“Today, the credit markets favor companies that have a history of solid performance coupled with a clear-cut plan for the future. We are confident that our vision is aligned with our strategic partners who are leading the market’s recovery,” said Ralph F. Hints, First Cal chief financial officer. “The new Flagstar facility will allow us to increase Fannie Mae, FHA and VA and non-GSE lending and provide the consumer more options."
First Cal funds conforming, FHA, VA and non-agency loans in the Western U.S. through its network of select brokers, its own retail lending operation and through DealPoint, its partnership program with community banks. Through DealPoint, community banks can leverage First Cal’s funding capacity in a broker or correspondent lending relationship.
“Our ability to secure additional warehouse funding capacity is due in large part to our efforts to improve the thoroughness and transparency of loan underwriting and processing,” said Mike Lamka, chief production officer for First Cal. “We continue to promote quality throughout the lending process through training, technology and communication, particularly in partnership with our brokers."
For more information, visit www.firstcal.net.