Why do some warehouse lenders charge non-usage fees?

Many warehouse lenders will seek to charge a non-usage fee because they are committing a specified amount of capital to be available to a given mortgage originator. In some cases, non-usage fees can be a percentage of the total commitment or a percentage of the unused portion. Lenders have been creative in calculating such fees and many originators experience these fees when volume declines. FirstFunding believes that a non-usage fee can be a significant hidden cost. We do not favor hidden costs. FIRSTFUNDING HAS NO NON-USAGE FEES.

We maintain multiple capital sources and our position is to be available when you need us. We have never charged non-usage fees and we do not intend to start now.