UWM and loanDepot update financing arrangements

Two major lenders made changes to their financing arrangements Wednesday according to filings with Securities and Exchange Commission. According to a filing, the move is similar to PennyMac’s one week ago. United Wholesale Mortgage established a $500 million warehouse line with Goldman Sachs in order to finance the acquisition, origination, and holding of certain mortgage servicing rights. The Ginnie Mae MSRs are collateralized the uncommitted facility. Financial turmoil has caused concern among mid-tier banks such as Signature Bank and Silicon Valley Bank. This has highlighted lenders’ dependence on financing facilities. As such, a flurry of disclosures have been published by publicly traded nonbanks outlining their financial arrangements with bank partners.Lenders such as Rocket Cos., United Wholesale, Guild Mortgage and PennyMac have said they have no ties to SVB and Signature Bank and expressed confidence in other depository institutions providing their financing.LoanDepot, which did have ties with Signature Bank, announced that it transferred $225 million of corporate cash balances out of it to an unnamed large financial institution.LoanDepot’s most recent disclosure, shows that as of March 16, the Foothill Ranch, California-based lender moved its master repurchasing agreement from Credit Suisse to Atlas and Nexera Holding.The embattled Swiss banking giant has been purchased by local rival UBS for $3.2 billion in the midst of financial regulators in the U.S. and abroad moving to contain the fallout of recent bank failures.The original master repurchase agreement was put in place with Credit Suisse and Credit Suisse First Boston in 2017.PennyMac also transferred some of its funding vehicles from Credit Suisse to Atlas and Nexera Holding. A spokesperson for PennyMac said that two of its MSR facilities total $500 million and $1 trillion.