Bill Dallas of FoAM: “Most warehouse lenders are at capacity and already ‘bulged’ most of their companies. As a result, if you need additional capacity and you didn’t plan for it, there are no new warehouse players. You are dead in the water.”
As one East Coast-based banker put it: “Before the pandemic exploded, I had eight or nine new customers lined up I wanted to bank. Right now, that’s on hold until this passes.”
We’re still waiting to hear word on pending legislation to provide economic relief to consumers and businesses affected by the pandemic. Included in the bill is a funding mechanism for nonbank servicers.