Warehouse USA - Non-Prime Warehouse Lender (NovaStar Subsidiary)
2007-03-30
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stories: bloomberg.com
The following notice announcing cessation of operations was posted on Warehouse USA's web site a few days ago:
Effective March 30, 2007 WarehouseUSA Capital Corp. is no longer accepting applications for mortgage warehouse lines of credit. WarehouseUSA clients will receive official notice of the closure of their lines as required by their respective agreements. All new funding activity by WarehouseUSA under existing warehouse lending lines is expected to be concluded on or about April 27, 2007. The closure of the warehouse lending business will not impact direct mortgage loan funding by, or any other business of, any NovaStar entity.
Articles such as this one suggest the shutdown was to reduce NovaStar's exposure to other, potentially weaker lenders.
If you want an idea of what the unit did in specific, these "Benefits" posted to the home page are rather illustrative:
With any of the WarehouseUSA warehouse line programs, you'll enjoy the following advantages:
- Close and fund in your name
- 100% of your line may be used for non-prime and Alt-A loans
- Line available for most all residential loan types up to 100% CLTV
- Online access to all loan info in warehouse and over 50 different reports
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Important: This company is on our list of lending operations that have "imploded". However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.