Magazine article American Banker

1st Financial, Hamilton in Venture to Help Banks Secure Financing

Magazine article American Banker

1st Financial, Hamilton in Venture to Help Banks Secure Financing

Article excerpt

CHICAGO -- Hamilton, Carter, Smith Consulting and First Financial Services have formed a joint venture to assist mortgage banks in seeking warehouse financing.

The venture will also provide consulting services for institutions seeking to enter the warehouse lending arena. Warehouse loans are used by mortgage banks to fund mortgages awaiting sale into the secondary market.

The tremendous growth in mortgage banking in recent years has strained existing sources of warehouse financing, making it difficult for some small to medium-size lenders to obtain financing.

Lender's Market

Warehouse lending has become a lender's market, a situation that Chicago-based Hamilton, Carter, Smith and First Financial of Oakland, Calif., wish to exploit.

Mortgage banks seeking funding will be given access to a database of lenders that includes information on their lending criteria. Mortgage banks will be able to match their operating profile with the lending criteria of lenders, according to Bob Horner, chief executive officer of Hamilton, Carter, Smith Consulting.

"We help mortgage banks make the appropriate connection," said Mr. Horner, the former chief executive of Citicorp Mortgage.

Clients will be assisted in preparing a credit package as well as in negotiating terms and conditions of the warehouse line.

|Real Lack of Lenders'

The venture's managers believe many clients will be medium-size mortgage banks that originate $20 million to $30 million a month, according to John Hurst, president of First Financial. …

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