pmuolo@imfpubs.com

A few short years ago, while the origination market for non-qualified mortgages was in its infancy, most warehouse financiers either avoided the sector or were loath to admit they played in the space at all. But not anymore.

With non-QM lending accelerating along with MBS issuance, many warehouse managers are now happy to admit that their banker-window is open for business, always has been.

“During my tenure here (22-plus years), we have supported non-agency and government-sponsored enterprise loans,” said Bob Garrett, president of warehouse lending for First Horizon Bank. “When non-QM came into existence under Dodd-Frank, we were already supporting loans that later got redefined as such.”

Another bank supporting the sector is Flagstar Bancorp, which estimates it’s been active in the space for at least five years.

And then there’s TIAA Bank, which recently celebrated its third year as a financier of non-QM product. Among warehouse providers, First Tennessee and TIAA rank third and fourth, respectively, while Flagstar holds the number eight position. For full details, see Inside MBS & ABS, now available online.