Overview

First Horizon has continuously served the warehouse lending industry since 1998. First Horizon’s typical customers are independent mortgage bankers whose primary objective is to fund closed loans with the intent to drive revenue from the origination and sale of residential mortgage loans. First Horizon offers sub-limits which include MSR lines, construction lines, and bridge lines to a select group of existing customers. The following information will help you understand First Horizon’s warehouse offerings.

Line Size

First Horizon Bank offers mortgage warehouse lines of credit ranging from $3 Million to 175+ Million

Interest Rate

Our warehouse relationships are priced competitively with other major national lenders and tailored to each customer’s specific circumstances. Rates are typically based on SOFR plus a spread determined by loan volumes, funding methods, operational expenses, etc.

Warehouse Fee

We charge one all-inclusive warehouse fee for each loan funded. The amount of the fee is tailored to each relationship and is based on factors such as interest rate, funding method, loan volume, etc.

Other Fees

There are no application fees, no shipping fees, no report fees, no legal fees, and no due diligence fees. A non-usage fee may apply in certain circumstances but is typically not required.

"Haircut"

The First Horizon warehouse line may be used to fund 100% of the note amount of a loan. We do require that loans be funded net of discount points and fees to be retained by you (i.e., “net funded”).

Maximum Leverage Ratio

Our maximum leverage for warehouse relationships is 15:1. This calculation is based on the combined net worth of your company and the qualifying net worth of all guarantors.

Warehouse Time Limit

The typical dwell limit is 45 days, but we will consider longer periods if appropriate. On average, our customers sell their loans in about 2 weeks.

Eligible Loan Types

You may fund conforming, reverse, government, and jumbo loans on your First Horizon Bank warehouse line. Other loan types may be acceptable as well … check with us.

Funding Mechanisms

Registering and funding a loan on your First Horizon Bank warehouse line of credit is simple. A single form with basic loan information may be uploaded to our website or a spreadsheet may be used to upload in batch format. Once loans are registered, the customer may request funding via wire transfer.

Qualifying Requirements To Get A First Horizon Warehouse Line

You must have a minimum of $500,000 tangible net worth in your company and have been in business at least three years. We need to see acceptable liquidity, a track record of profitability (no profitability covenants), and you must have excellent references. The liquidity threshold to be in compliance with our covenants is 5% of the approved warehouse line amount. The personal guaranty of the owner(s) is required.