Warehouse lenders that supply credit to nonbank originators have seen usage rates and new line requests increase significantly in the past few weeks, thanks in part to plunging interest rates brought about by the “Brexit” vote. David Frase, president of warehouse lending for Southwest Bank, said, “Any warehouse bank that isn’t seeing record volume is probably malfunctioning in some way. We’ve been pretty darn busy.” Other warehouse managers have reported...
Mortgage lenders may get greater clarity on the legal question of just who may sue them for alleged racial discrimination, after the Supreme Court of the United States announced recently it would take on separate lawsuits filed by the city of Miami against Bank of America and Wells Fargo. The city accused the pair of perpetrating discriminatory mortgage lending within its jurisdiction over a long period of time. The city alleged that the banks’ conduct violated the Fair Housing Act in that they intentionally discriminated against minority borrowers and that their conduct had a disparate impact, resulting in an unbalanced number of foreclosures on minority-owned properties. The precise legal issue before the high court is...
This attendee said one primary concern was whether nonbank Ginnie issuers would have the financial wherewithal to make advances to MBS investors in the event of another financial crisis.
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