Warehouse lending is a critical piece of the mortgage industry framework, and has been significantly impacted by the subprime meltdown and subsequent global financial crisis. The abundance of warehouse funding sources all but disappeared as warehouse lenders became less willing to expose their capital to market risk and faced increased regulatory requirements. After several years of scarcity, new players are once again entering the field to join the few surviving legacy lenders. Looking to the future, successful warehouse lenders will recognize the evolving business model that shifts from traditional paper flow, yield-driven portfolios to more electronic, targeted and transaction fee-based eWarehouse production.
