Update from the MBA Secondary Conference:
25 billion in warehouse line capacity currently available to independent mtg bankers.
2.7 trillion in originations expected this year with 40% of conventional product and 60% of govt product being originated by correspondents.
We’ve spoken with several lenders who are actively renegotiating renewal of their line and the renewal terms are note rate plus 300 bps with a penalty of 50 bps for every dollar not utilized at least once within a 30 day timeframe up to the line limit.
Nonrefundable application fees in the amt of $1500 is currently the norm, but some lines have recently increased it to $5000 and correspondents are paying in the hope of getting a line.
Looks like there will be no hope of GSE intervention on this front any time soon.
