SitusAMC launches warehouse financing solutions division

“When you start to think, as an organization owning, operating and licensing software applications closing in on 80% of the warehouse lenders out there, we thought it made sense to develop a more strategic business, a mortgage ecosystem, around the technology we own, operate and license to clients,” Beshara told MPA.

He offered context that led to the launch. Last year, SitusAMC acquired Street Resource Group, Inc., and its widely utilized Warehouse Loan System (WLS). The acquisition expanded SitusAMC’s warehouse lending technology offering, pairing WLS with SitusAMC’s existing ProMerit system (acquired via the MBMS, Inc. acquisition in 2019). The combined offerings support more than 60 clients representing approximately $3 trillion in loan financing during 2020, the company announced at the time. As part of the deal, SitusAMC retained the SRG team, and SRG founder and CEO Stanley Street will serve as vice chairman, SitusAMC Technologies.

“Some of the challenges that are facing warehouse lenders today is we are seeing an increase in competition, so we’re seeing new franchises that are entering the space,” Beshara said. “They are, in some cases, looking to grow and expand their footprint. Perhaps they have been historically managing their book of business in spreadsheets which is a very manual process. In other cases, these are new franchises that are essentially building the foundation of their business today. What that’s doing is increasing the competitive landscape.”

Recent market changes have further exacerbated the layers of complexity: “There are new challenges,” Beshara added. “We’re on the brink of rising inflation, higher mortgage rates, agency volumes are tapering off. So you’re starting to see a slowdown in volume and product that will be available to finance in the marketplace. You’re also dealing with some of the ripple effects of the pandemic in the sense that a lot of the work environment has evolved, and you have people who either want to work remotely, in a different geographical location, or want a hybrid environment. Traditionally, that hasn’t been how banks have operated.”