2009-04-02 — washingtonpost.com
The dwindling number of banks offering warehouse lines-of-credit is no news to our readership. Its the amount of available credit remaining that tells the real story, and if you wondered why non-depository lenders were experiencing funding delays or withdrawing from wholesale all together, this paints the ugly picture for what it truly is...
"But the amount of available credit has plummeted to about $25 billion from $200 billion a year ago, according to the mortgage bankers group. Many of the large financial institutions that extend credit to the bankers have left the business, imposed tough restrictions or capped existing lines as they try to shore up their own capital. In the past few weeks, National City Bank, J.P. Morgan Chase and Guaranty Bank have announced plans to end warehouse lending."
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NOKIDDING327 at 20:42 2009-04-03 said:
as they try to shore up their own capital. It is worse than that. We have had one of our warhouse lines for 15 years; they now DEMANDED a 1/4 point on the entire line JUST TO KEEP THE LINE. They want $45,000 upfront to just keep us online! This is just because they can; the choice is put up or close down. It reminds me that in a time of a milk shortage, the lowest level of crooks try to sell milk at $50 a gallon. Permalinkadd a comment | go to forum thread
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