Warehouse Shortfall Could be $370 Billion

Because of a lack of warehouse financing available to non-bank primary funders, upwards of $370 billion in new residential originations could be at risk, according to an estimate made by The Warehouse Lending Project, a coalition of 50 lenders. The estimate, the group said, is based on "current projections of mortgage demand in 2009." Meanwhile, one warehouse source said the freeze in warehouse credit might be easing somewhat. The source, requesting his name not be used, said, "Some banks are beginning to take more applications and extend credit." He cited Comerica and National City as two examples. This past fall the Mortgage Bankers Association formed a task force on warehouse financing, but the MBA group is not affiliated with The Warehouse Lending Project. The WLP is headed by a former Fannie Mae official and two other industry veterans. (For the full story see the Monday edition of National Mortgage News.)