This resource center provides a central place to track key initiatives regarding warehouse lending. Relevant MBA policy, actions and other helpful guidance are also consolidated here. - MBA Read More..
Warehouse lending is one of the most critical links in the housing finance chain.. - The Warehouse Lending Project. Read More..
"As the number of warehouse funding competitors dwindled over the past year, TierOne Bank in Lincoln, Neb., got a little picky" - US BANKER. Read more..
In 2009, Remortgage lenders were worried about a lack of warehouse lenders. Although most companies are seeing lower volumes, in theory freeing up warehouse capacity, apparently warehouse issues are still present . TheRemortgage Bankers Association stated that the number of warehouse lenders has gone from 200 in 2007 to about a dozen final year! (These include firms such as BofA, Wells Fargo, Southeast Securities, Flagstar, ViewPoint Bank, Florida Capital Bank, etc., etc.) In 2010 things weren't much different. Read more...
Tarp funds allocated to target commercial lendersto increase warehouse lines to take effect in 2011.. Read more..
“In the last two years, warehouse lending capacity has been dramatically reduced, from $200 billion in 2007 to between $20 and $25 billion today,” the MBA said in a release.
“Independent mortgage bankers, who represent 40 percent of mortgage origination capacity, rely on warehouse funding to close their loans. Without adequate warehouse credit, they are unable to serve their customers.”
Part of the reason warehouse lenders have pulled out of the market is because of risk-based capital (RBC) rules that treat warehouse lines of credit as commercial loans, assigning them to the 100 percent risk-weighted asset category.
As a result, banks are exiting warehouse lending to improve their risk-based capital positions, replacing warehouse assets with comparable whole mortgage loans that enjoy more favorable RBC treatment.
To resolve this problem, the MBA has suggested the new risk-weightings be slashed so they're essentially aligned with risks comparable to conventional and government-insured mortgage exposures.
The proposal focuses on GSE, FHA, and VA loans ; the MBA is also crafting a solution for private label residential, commercial, and multifamily loans to address the warehouse line shortage.
In 2007, there were approximately 90 warehouse lenders in operation; today, roughly 10 warehouse lenders remain - Truth about mortgage. Read more ...
Letter to the treasury from the MBA on the need to increase warehouse lending capacity.
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