Warehouse Lending Market at a Turning Point as Oversupply Meets Innovation
May 13, 2011
Faced with a declining originations outlook, mortgage lenders should take advantage of today's more plentiful warehouse lending environment to review strategies that were developed during the liquidity crisis, industry experts say. The warehouse capacity issue has swung 180 degrees from where it was a few years ago, said Elaine Batlis, a senior vice president at Silvergate Bank, during last week's national secondary market conference sponsored by the Mortgage Bankers Association. Back in 2006-07, there was an oasis of liquidity; pricing was good and terms were flexible, Batlis said. But in the wake of the financial crisis in 2008, there was a sudden...