Banks and thrifts that play in the warehouse lending space had $29.8 billion of commitments on their books at the end of September, a 26% decline from the same period a year ago, according to new survey figures compiled by National Mortgage News.
However, almost all of the decline can be traced to one firm: Bank of America, which has been cutting back its presence in mortgage finance across the board.
B of A, traditionally, has declined to provide a warehouse commitment figure, but according to its competitors it had roughly $5 billion of contracts in place at Sept. 30, compared to $15 billion a year earlier.
The bank is in the process of shifting over its larger warehouse accounts to its affiliate, Merrill Lynch & Co. Several of its smaller nonbank customers are now scrambling for new lines.
A B of A spokesman said recently the bank is committed to staying in warehouse finance, but at a reduced level.
Wells Fargo & Co. and B of A ranked first in outstanding commitments with $5 billion, NMN found.
First Tennessee Bank and Flagstar Bancorp ranked third and fourth respectively. (For the full story and rankings see the upcoming Monday edition of NMN.)
