Stanley Street, founder and president of Street Resource Group, a provider of warehouse lending software, emphasized the need for further expansion into the warehouse lending space. He sees a need to expand lending opportunities to smaller and mid-sized mortgage brokers and originators.
Street explained that warehouse lenders have staged a comeback since the mortgage crisis, with companies in the space bringing a great deal of liquidity to the market.
However, options still remain in short supply.
“Today’s mortgage bankers are unable to grow without liquidity, and that liquidity is provided by warehouse lenders—you cannot have one without the other,” Street said. “When there is a scarcity in warehouse funds, there is a limited availability of credit to the marketplace. This reinforces the concentration of mortgage business by large banks and lenders and limits the mortgage financing options for consumers.”