Titan Lenders Corp president Mary Kladde spoke in depth with National Mortgage News this month about the need for a national warehouse lending solution, how this warehouse line could be structured, and Titan’s new programs designed to address this need for regional banks, community banks and credit unions. Thanks to Brad Finkelstein for a fantastic explanantion of this critical issue:
“The founder of Titan Lenders Corp., after recently lamenting about the lack of warehouse capacity, has sprung into action to help create a solution to the problem.
“Mary Kladde, president of Titan Lenders Corp, has been outspoken in the need for an increase in the availability of warehouse funds, even going as far as calling for the government to use Troubled Asset Rescue Program money for this purpose.
“Now, Titan has launched a warehouse lending operations service platform to facilitate community bank and credit union entry into warehouse lending. The platform helps regulated institutions sustain a prudent level of due dilligence, compliance and profitability when offering bridge financing required by non-depository mortgage bankers.
“Since she first went public with her call for the use of TARP funds to serve as interim funding for mortgage loans, a few community banks, which have the capital to lend and the relationships with local mortgage bankers but lack the expertise to execute a warehouse lending program, have contacted Titan, she said. Mortgage bankers have started to turn to their local banks because they are seeking warehouse providers as their old sources are exiting the business.”
Read more about Titan’s warehouse lending platform here. John Courson also ran a piece in the Washington Times this week focusing on the crisis:
“With so much attention focused on the housing market these days, it is surprising that an extremely critical, yet not well publicized, link in the mortgage-lending chain is in danger of becoming permanently broken.
“Warehouse lending, which provides short-term funding to mortgage banks so they can originate mortgages and sell them in the secondary market, is headed toward extinction.
“The situation has already reached the point where many of the “once-in-a-generation” refinance and purchase opportunities touted in the media are not attainable by many consumers due to the fact that lenders face a cash crunch caused by the loss of warehouse credit lines.”
