With warehouse lending declining, many mortgage lenders are feeling endangered. At the Mortgage Bankers Association's Independent Mortgage Bankers Conference in Dallas Thursday, warehouse lenders offering lines of credit to correspondents offered their input on what’s vital for improving the warehouse lending industry.

Reynolds Financial Services Group Managing Partner James Reynolds said warehouse lenders provided approximately half of the annual funds utilized in the mortgage banking industry for the purchase and refinancing of homes nationwide, according to the 2012 Annual Warehouse Lender Survey.

“We have come back and there is a lot of traction," he said. "We’re seeing a lot of new players.”

Panelist Elaine Batlis, Silvergate Bank warehouse lending manager and senior vice president,  encouraged conference participants to improve communication. Batlis urged full disclosure of everything in the approval application as well. “I’ll tell you all what I tell my clients: ‘Help me help you,’ ” said Batlis. 

Texas Capital Bank(TCBI) Executive Vice President/Warehouse Lending Jack Nunnery emphasized that banks should look into whether a business is retaining capital and income when applying for a loan.

To improve the warehouse lending market, it is crucial that businesses include this information in their loan applications, he said.