We continue to hear reports about a new player in the warehouse lending space that is offering attractive borrowing rates that appear too good to be true.
At First Tennessee Bank, for example, its commitments were flat from the second to the third quarter, but average outstandings increased by 13 percent to $861 million.
Warehouse lenders increased the dollar volume of their commitments to an estimated $31 billion in the third quarter, a 3.3 percent sequential improvement, according to survey figures compiled byInside Mortgage Finance. Compared to the same quarter a year ago, commitments fell by 11.4 percent. But a commitment to lend is just that. Many nonbank borrowers rack up commitments, but the real test of the health of warehouse lending is in usage rates. At First Tennessee Bank, for example, its commitments were...[Includes one data chart]
We’ve heard scattered reports about a new nonbank warehouse provider that is offering extremely cheap financing while asking for large fee payments upfront...
Ginnie Mae this week provided new details to the long-anticipated plan for increased issuer net worth and liquidity and a new performance scoring method for issuer activity – changes that could adversely affect small issuers and portfolio servicers. In remarks at the Mortgage Bankers Association’s annual convention in Las Vegas, Ginnie Mae President Ted Tozer said the changes are part of a larger effort to ensure the continuing flexibility and availability of the agency’s mortgage-backed securities program to as many entities as possible. New types of issuers and counterparties have entered the agency-backed MBS market in the wake of the financial crisis, which called for adjustments and tailored approaches to the evolving housing finance market, Tozer noted. Tozer said both policy changes and staff expertise will ensure the success of ...
There have been some reports – unconfirmed – that some Wall Street firms are considering extending “repo” lines to non-QM funders, but that hasn’t happened yet.
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