The warehouse sector is in a historic sweet spot: Nonbanks are making money hand-over-first, while accepting the tighter underwriting requirements placed on them. (Includes data charts.)
In the COVID-19 era, lenders have been hampered by credit tightening and forbearance edicts, but an odd thing has occurred: Profit margins on new loans are phenomenal.
Interest rates remain low and not one major (or even mid-sized) nonbank conventional lender has closed its doors. Some shops are even reporting record loan volumes in the pandemic era…