BB&T’s warehouse lending commitments rose 28% in the second quarter to $1.76 billion as the bank increased its nonbank customer base to 160 institutions.
However, its average outstanding balances fell to $606 million from $711 million in the same period a year ago.
According to preliminary survey figures collected by National Mortgage News and the Quarterly Data Report, some warehouse lenders are reporting stronger than expected commitment figures for 2Q but their average outstandings are declining. This means that nonbank lenders are lining up credit lines – but not necessarily using them. (Typically, nonbanks have to pay fees to keep warehouse lines open even if they are not using them.)
In August 2009 BB&T bought certain assets from the failed Colonial Bank, Montgomery, Ala., including part of its warehouse group, which was based in Florida.
Recently, Flagstar Bank reported that it had $1.7 billion of warehouse commitments at the end of June, a 29% jump from the same period a year ago. But Flagstar’s outstandings rose 32%.
