WAREHOUSE LENDING
Simmons Bank's Warehouse Lending Program is designed specifically for non-delegated correspondent mortgage lenders. Thrive on the stability of Simmons Bank, the experience of our warehouse lenders, and the tailored service of a program that understands your business.
| Warehouse Lending Program Guide | |
|---|---|
| Application Deposit | $1,000, returned after initial loan funding or refunded if application declined |
| Borrowing Rate | Matches note rate on each funded loan with a floor rate of 3.5% |
| Transaction Fee | Up to $200 per file influenced by average loan size per most recent Call Report |
| Personal Guarantee | Yes, for owners of at least 10% of company |
| Line Size | Up to 20x personal plus corporate liquidity |
| Minimum Liquidity | Higher than $55,000 or 1/3 of average loan size per most recent Call Report |
| Acceptable Liquidity | Corporate cash (net of short-term borrowings) and marketable securities plus unrestricted cash and securities held by personal guarantors |
| Startups | Allowed |
| Financial Reporting | Quarterly, GAAP-quality balance sheet and P&L; does not need to be audited |
| Advance Rate | Up to 99% of note amount; lender fees netted from wire |
| Maximum Dwell Time | 45 days |
| Pledge Account | Not required |
| Delivery Options | Best efforts |
| Permitted Products | FNMA, FHLMC, FHA (with DE approval), VA, USDA, Section 184, Jumbo |
| Prohibited Products | Second Liens, Manufactured Housing, Reverse Mortgages |
| Geography | All U.S. states except New York |
| Minimum Credit Scores | Agency 620, FHA 580, VA/USDA 500, Nonagency Jumbo 700 |
| Insurance Required | $300,000 fidelity bond plus $300,000 mortgagee's interest errors and omissions |
| Agreement Term | Renewable annually (no renewal fees) |
| Underwriting | Prior approval by takeout investor |
| Fulfillment Requirement | Must use approved third-party provider to generate legal documents and review final CD prior to closing; may instead use takeout investor for fulfillment, if available{40} |
| Upgrade Available | Delegated fulfillment with minimum $250,000 liquidity, 1% pledged CD and resume of qualified closer(s) |
| Next Upgrade | Delegated underwriting with minimum $500,000 liquidity, 1% pledged CD, audited financial statements, and resume of qualified underwriter(s) |
TALK TO A LENDER
David Frase, CMB
President
Warehouse Lending
(214) 502-3280 cell
david.frase@simmonsbank.com
Jason Gillespie, CMB
Senior Vice President
Warehouse Lending Production Manager
(972) 837-5461 cell
jason.gillespie@simmonsbank.com
Simeon Knight
Vice President
Warehouse Lending Account Executive
(214) 463-9777 cell
simeon.knight@simmonsbank.com
Jennifer Chaikin-Hood
Vice President
Warehouse Lending Account Executive
(214) 789-9326 cell
jennifer.hood@simmonsbank.com
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{40} Simmons Bank is not affiliated with any fulfillment providers or takeout investors.