Warehouse credit is becoming more available, but only for the smallest and biggest mortgage lenders, an industry adviser said.

Those companies that want a line of $10 million to $15 million can find someone willing to provide the credit, though not at the terms the industry is used to, said Peter Norden, the president and chief executive of AMA Advisors. On the other end of the spectrum, larger lenders are finding Wall Street firms willing to provide funding, Norden said Wednesday during a panel discussion at the Regional Conference of Mortgage Bankers Associations in Atlantic City.

However, these providers are looking for at least $10 million in liquid net worth, he said. If the lender wants a $100 million line, the liquid net worth requirement is $20 million. There are only 45 or so companies that qualify for the $10 million standard and about 15 for the $20 million, Norden said.

Furthermore, warehouse providers are looking for haircuts as high as 10 points, with 5 points being the norm, he said. Providers are restricting the types of loans that can be put on a line and they want the loan off the line in 30 days.

Norden added there are no "hospital" lines available for loans that lenders have been forced to repurchase or those with document problems, and said he did not know of any provider allowing lenders to borrow against their servicing portfolios.

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