Security One Lending announced it has entered into a strategic warehousing relationship with LaJolla, California based Silvergate Bank. Security One Lending represents Silvergate’s first warehousing client, and the firms funded their first transaction on Friday, April 24th.
“Warehouse lending has been, and continues to be, the major issue for non-depository mortgage banking firms” said Torrey Larsen, President of Security One Lending. “Our relationship with Silvergate Bank provides the liquidity for our firm to expand and meet the growing demands of the marketplace. Additionally, we are pleased to be working with such a well run, well respected organization as Silvergate.”
In April, Silvergate established its warehouse lending division and named Elaine Batlis as the head of the divsion. Batlis brings over 20 years of experience to the bank and has a solid record of successfully establishing warehouse lending programs and managing multi-billion dollar mortgage credit facilities said the statement.
As an interesting side note, private equity firm JAM Equity Partners acquired a 9.9% stake in the bank earlier this year. JAM has been looking to invest in established reverse mortgage lenders, so this could signal they’ve made a deal with Security One. I’m speculating here, but with the San Diego, CA based lenders size and multiple distribution channels it would make sense.