So, you doubt our 2Q origination estimate? Here’s what an executive from a top-five warehouse bank told us: “We’re experiencing a significant pick up in outstandings."
Up until the housing crash of 2008, it was not uncommon for many warehouse lenders to extend lines of credit to buy MSRs or finance the holding of the asset.
One last thought on Mel Watt, FHFA and expanding the credit box: Members of the GOP who were big boosters of the recently departed Ed DeMarco will probably read the g-fee comment notice and have a fit…
Before the Consumer Financial Protection Bureau implemented standards for qualified mortgages, few lenders admitted that they were willing to offer non-QMs. However, in recent weeks, a number of lenders have touted their entrance into the sector, providing Ethos Lending with plenty of competition. Some of the non-QM lenders are sticking to relatively safe offerings of interest-only mortgages to well-qualified borrowers, while others see a strong market in non-QMs for borrowers that might not qualify for agency financing. This week, Caliber Home Loans announced...
Banks that extend warehouse lines of credit to non-depositories are suffering from a usage drought on their loans, forcing them to consider other asset classes to finance, including mortgage servicing rights. According to industry advisors and warehouse officials, there are at least half a dozen large banks that are dipping their toe into the MSR financing pool or contemplating such a move. “From what I’m seeing, a number of warehouse banks are looking...
An East Coast-based warehouse executive, requesting anonymity, said he has approached his credit board about such a change, and his waiting to hear back from them.
Banks that extend warehouse lines of credit to nonbank originators saw their commitment levels fall 39 percent in the first quarter compared to the same period a year earlier, yet another sign that the origination market was extremely weak during the first three months of 2014. On a sequential basis, commitments dropped a more benign 10.8 percent, but it’s not unusual for some firms to keep a line open, even if they’re not utilizing their power to borrow. According to Inside Mortgage Finance estimates, banks and nonbanks had $27.0 billion in warehouse commitments on their books as of March 31, compared to $31.0 billion on December 31, and $45.0 billion a year ago. One active warehouse bank had...[Includes one data chart]
The sphere of mortgage lending that will exist outside the parameters of the qualified-mortgage standard established by the Consumer Financial Protection Bureau represents an attractive opportunity for both lenders and bond buyers, but skittish investors need to be won back before they return and participate to any significant degree. That was one of the key take-aways from a webinar sponsored this week by Inside Mortgage Finance, an affiliated publication. Non-QM mortgages will exist...
One warehouse executive, requesting anonymity, said usage rates for the fourth quarter and the first two months of 2014 “have been very low.” He gave a range of 20 percent to 50 percent.