Citibank (C) is doubling the correspondent mortgage lending line extended to PennyMac Mortgage Investment Trust (PMT), through one of its wholly-owned subsidiaries, PennyMac Corp.
The increase is from $200 million to $400 million.
According to a filing with the Securities & Exchange Commission, under the terms of the Loan Repo Facility, PennyMac may sell, and later repurchase, newly originated mortgage loans.
PennyMac uses the fund newly originated mortgage loans that are purchased from correspondent lenders by PMC and held for sale and/or securitization.
PennyMac will guarantee repayment. The REIT is expanding it correspondent lending lines across the board.
The company recently entered into another repurchase agreement that also allows it to sell, and later repurchase, newly originated loans to and Credit Suisse First Boston ()
