Pioneer Commercial Funding Corp. said it had been granted a $25 million secured line of credit by a major banking institution. The funds are to be used mostly to fund residential mortgages through mortgage bankers and brokers.
The credit line replaces a $4 million facility that has expired.
Albert Nissim, president and chief executive, said the transaction was made possible after a $4 million infusion of capital.
He also said Pioneer would be able to accept new clients, and that the company expected substantial utilization of the available funds.
Pioneer provides mortgage bankers and brokers with warehouse lines of credit. These lines fund loans that have been closed and are awaiting sale in the secondary market. The loans are generally repaid within two weeks, the company said.