As the wind blows to and fro in Washington, the warehouse lending sector is still agonizingly short funds. This is just another example in a long line of examples of why we can’t wait for the government to fix our ills. We, as an industry, need to take up our own issues and fix them. If we haven’t learned anything in the last 2 years, we have definitely learned that if we do not self regulate and step up; others who know nothing about our business will…. and here we are today.
Problems Pile Up in the Warehouse Lending Market
American Banker (09/04/09) P. 11; Muolo, Paul
The Mortgage Bankers Association and other industry groups may have to pitch their plans for aiding the warehouse lending sector to a new regulator and new people in government because the president of Ginnie Mae and director of FHFA — both big advocates for the issue — are leaving their agencies. The industry believes that having Fannie Mae and Freddie Mac purchase participations in warehouse lines would be the easiest way to boost liquidity to nonbank lenders; but the idea also would have to be approved by the Treasury Department, which is losing Assistant Secretary Seth Wheeler, who has been meeting with lobbyists. (More)
