LoanDepot and two of its warehouse partners recast agreements for lending lines going into 2023, per a filing with the Securities and Exchange Commission.
Signature Bank will provide loanDepot with the same revolving line of credit as it did last year, but NexBank has made some changes to its agreement.
Dallas-based depository NexBank, which has extended lines of credit to the California-based mortgage lender since 2014, will provide a line of credit of $200 million, $68 million lower than what it supplied in 2022.
Signature Bank will provide loanDepot a revolving
Both agreements are secured by loanDepot's mortgage servicing rights of Freddie Mac loans, the filing said. According to loanDepot's third quarter filing, it holds
LoanDepot's warehouse and other lines of credit dipped to $2.5 billion in the third quarter, down from $7.3 billion in December 2021.
The 66% decline was a result of loan sales outpacing originations during the nine months ending Sept, 30, 2022, according to the lender's third quarter earnings. Because of this,
In November, LoanDepot amended a warehouse facility where it sells and repurchases mortgage loans from investment banking firm Jefferies Funding LLC. The update to the master repurchase agreement decreased the facility's uncommitted limit from $1.1 billion to $350 million, while maintaining a committed financing amount of $400 million.
A
LoanDepot