Quality Home Loans secures $140,000 short-term DIP facility to pay mortgage sale due diligence fees

By Caroline Salls

Pittsburgh, Oct. 2 - Quality Home Loans will receive $140,000 in short-term debtor-in-possession financing from Quality Loans, LLC to allow the company to pay due diligence fees in connection with a proposed mortgage loan sale, according to a Tuesday filing with the U.S. Bankruptcy Court for the Central District of California.

The due diligence fees are owed to Terwin Advisors LLC.

Quality Home Loans said it expects to receive an influx of cash from Bayview Financial LP for trust fund account reconciliations by the end of October.

As a result, the DIP facility must be repaid on the earlier of the date the company receives the trust fund reconciliation proceeds and Oct. 31.

Quality Home Loans, an Agoura Hills, Calif., mortgage lender, filed for bankruptcy on Aug. 21. Its Chapter 11 case number is 07-13006.

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