twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

Secondary Marketing News | Correspondent Lender Directory
Mortgage portfolio trades and forward commitments. Correspondent lending, r e p u r c h a s e s and warehouse news. Secondary marketing statistics and lawsuits.

Mortgage Investors Diminish

Street Resource Group reports 66% decline

March 18, 2008


DALLAS -- The number of investors acquiring new loans from mortgage banking firms has tumbled by two-thirds, according to one warehouse technology firm. At the same time, as activity is redistributed among warehouse lenders, vast opportunity is being created for new warehouse players.

Investors fell from around 600 in early 2005 to about 200 at the beginning of last year, Stanley Street, president of Street Resource Group Inc., said in an interview Monday with while attending the Mortgage Banking Conference & Expo hosted by the Mortgage Bankers Association.

He noted that as of December 2007, six investors, including Countrywide, Citigroup and SunTrust, handled 60 percent of business and another 10 investors were responsible for 40 percent. He said his company, based in Atlanta, has 20 customers responsible for about half of the market.

Street's vantage point, as a technology provider and consultant for warehouse lenders, gives him valuable insight into the world of secondary marketing. He said his company, which handles 50 percent of the warehouse lending market, has been providing Windows-based software applications for 14 years. Their Internet-based version, developed five years ago, requires software to be installed on originators' desktop computers.

Street Resource, founded in 1986, announced Sunday a new version of its flagship Warehouse Lending System.

The executive indicated his firm helps prevent fraudulent double fundings by comparing funding requests among its own customers and enabling warehouse lenders to incorporate other third-party databases to do fraud checking, validation or valuation.

Street, who has reportedly been working in the financial services industry for over 30 years, sees opportunities for new warehouse lenders.

"What's happening in the industry is this huge redistribution as the large-tier warehouse lenders basically vaporize -- Wall Street, the RFCs, the WaMus of the world. All the originators that still need warehouse funds ... are all searching for warehouse lines," he explained. "In the 30 years I've been in this business ... this has been the most volatile, changing year."

While warehouse lenders used to demand that originators have no more than one warehouse line because of the risk of double funding, originators are now obtaining several lines.

"Instead of one $100 million line, they're going to get four $25 million lines," Street stated. "So they're not dependent on any one provider for funds."

He noted many new warehouse lenders -- mainly financial institutions with low cost funds and some Wall Street investment banks -- are entering the market right now because it is the best time to be in the warehouse lending business.

"There are too few suppliers. There are too many originators seeking warehouse lines," Street said. "It's good product and basically a controlled delivery."

Other factors making it a good time to be in warehouse lending include more rational risk-based pricing than had previously been in the marketplace, maximum risk control and the declining cost of technology.

Sam Garcia worked in mortgage lending for twenty years prior to becoming publisher of

e-mail: [email protected]

Mortgage Technology news
Technology news for originators, executives and servicers. Coverage of LOS systems, loan product and p r i c i n g engines and other technology offered to the mortgage industry.

The Mortgage Graveyard
Failed, closed and a c q u i r e d mortgage-related entities.

Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders