Warehouse lenders

Texas Capital Bank, which already provides warehouse financing for e-mortgages, will now purchase these loans off those lines as it looks to increase liquidity for this product.

Merchants has agreed to buy NattyMac, a company it has been in business with since 2014.

Total Expert will use its new $20 million venture capital investment — led by Emergence Capital — to build out its Marketing Operating System, designed for the future of financial services.

Redwood Trust has priced a new stock offering that is aimed at increasing funding to new initiatives like investments in the single-family rental and multifamily sectors as well as routine business.

The March acquisitions of a warehouse lending portfolio and eight California bank branches helped fuel a 22% increase in net income.

Flagstar Bancorp returned to profitability in the first quarter after tax reform caused a loss in fourth quarter, but its mortgage revenues dropped 15% due to margin compression and lower volume.

There is an oncoming liquidity crisis that will force consolidation in the mortgage industry as margins tighten and funding sources dry up.

The Michigan company has been acquisitive lately, buying California branches and a wealth advisory firm.

Warehouse lines of credit are getting more expensive as short-term interest rates rise, and lenders have limited options for reducing their costs.

Competition between fintech, marketplace and traditional mortgage lenders often focuses on borrower-facing automation and other technology. What gets overlooked is how differences in their funding sources create another area of competition.