The warehouse lending world continues to change…
We’ve long known that the mortgage industry is one of cycles. Nothing stands still for very long. Over the past two years, however, it would seem that the traditional cycles have been juggled a bit more with the introduction of activist regulation and enforcement.
Right now, I’m seeing more alliance building in the warehouse sector than I’ve seen in years. My own business is being asked to bring together banks, lenders (warehouse and correspondent) and brokers like never before. Perhaps this has to do with increased capital requirements or the shifting secondary environment. Whatever the case, I’m also seeing more demand for sublines on warehouse lines (we are helping existing clients find partners who will allow sublines, in fact).
If anything, change is the constant right now, and it’s clearly better to partner than go it alone. If your network is getting dusty, it’s time to get in touch!