Warehouse Lending
Thrive on the stability of Simmons Bank, the experience of our warehouse lenders, and the tailored service of a program that understands your business.
| Application deposit | $1,000, returned after initial loan funding |
| Borrowing rate | Tied to note rate on each funded loan with a floor rate of WSJ Prime minus 2% |
| Transaction fee | Charged per file |
| Personal guaranty | Yes, for owners of at least 10% of company |
| Line size | Up to 20x personal plus corporate liquidity |
| Minimum liquidity | Higher of $100,000 or of average loan size |
| 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 account; lender fees netted from wire |
| Maximum dwell time | 45 days |
| Pledge account | Not required unless using delegated fulfillment or delegated underwriting |
| Delivery options | Best efforts |
| Permitted products | FNMA, FHLMC, FHA (with DE approval), VA, USDA, Section 184, Jumbo, Non-QM |
| Prohibited products | Second liens, construction, 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 |
| Underwriting | Prior approval by takeout investor unless approved for delegated underwriting (see below) |
| Fulfillment requirement | Loan documents to be generated and reviewed by takeout investor or approved third party provider* unless delegated for fulfillment |
| Delegated fulfillment | Permitted with resume of qualified closer, $250,000 corporate liquidity, and 1% pledged CD |
| Delegated underwriting | Permitted with resume of qualified underwriter, $500,000 liquidity supported by audited financials, and 1% pledged CD |
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
-
{40} Simmons Bank is not affiliated with any fulfillment providers or takeout investors.
-
{234} Simmons Bank NMLS#: 484633