Seeking to bind correspondents to it with financing, PNC Mortgage plans to expand its warehouse lending.
The Vernon Hills, Ill., mortgage lender said it will concentrate on the market's lower end, supplying lines of credit to mortgage banks with a net worth of about $1 million.
This effort will be distinct from a warehouse lending program at parent PNC Bank, which participates in large syndicated lines of credit to big-league mortgage banks.
Warehouse lending is a kind of inventory finance. Originators of loans use warehouse credit to carry mortgages that are being prepared for sale into the secondary market, usually through the Federal National Mortgage Association or or Federal Home Loan Mortgage Corp.
Saiyid T. Naqvi, president of PNC Mortgage, tapped executive vice president Richard J. Lovett to head the effort. This will be in addition to Mr. Lovett's directorship of corporate, consumer mortgage, wholesale, and purchase programs.