Warehouses are Exiting the Mortgage Space
Many warehouse lenders exited the space this year, including Silvergate, Wells Fargo, Fifth Third, First Republic, Comerica, and Webster.
IMBs leveraging these lines were forced to diversify their loans or were stuck with what they had.
We predict a trend in the closing of traditional warehouse lines. Protect your IMB in advance:
- Look at loans & niches. Find warehouses specialized in your niche.
- Use a minimum 3 warehouses. We see an average of 3-5 warehouse lines per IMB.
- Diversify lines, align incentives, and evaluate non-use fees.
As a neutral intermediate in mortgage lending, we can offer advice on optimal warehouse line allocation. Talk to an expert at OptiFunder with questions on warehouse closures and where to go next.