Industry NewsMortgage

Metrocities gets additional cash influx from private investors

Lender satisfies past, future repurchase claims, tightens underwriting
Published on Sep 27, 2007

Metrocities Mortgage LLC says it's paid an undisclosed sum to satisfy "known and unknown" repurchase claims on its past loans. The move to retire past and future buybacks is one aspect of a roughly $125 million investment in Metrocities Mortgage by Sterling Partners, said Paul Wylie, Metrocities founder and chief executive officer. "The fact that we have the foresight to settle up with investors means we don't have to look over our shoulders as other lenders do as loans continue to go bad, probably over the next six quarters," Wylie told Inman News. Sterling -- a $2.2 billion private equity fund -- is also guaranteeing Metrocities' major warehouse line of credit, ensuring the company will have continued access to the funds it needs to make loans, Wylie said. That allows Sherman Oaks, Calif.-based Metrocities to engage in a countercyclical growth strategy. Metrocities is recruiting more loan officers and launching companywide technology upgrades as part of a plan to increase market s...

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