Credit

MBA: Change Risk Weighting for Warehouse Credit 

Faced with a growing dearth of funding for non-depository mortgage lenders, the Mortgage Bankers Association earlier this week sent a letter to key regulators asking for changes in risk-based capital weightings tied to various warehouse lines of credit. Calling the decrease in warehouse credit availability for lenders a “signficant, yet avoidable, bottleneck”, MBA president John Courson suggested that regulators look at easing capital requirements tied to warehouse lines of credit.