The Need for Funding Alternatives

Non-bank mortgage originators account for just over 80% of newly originated mortgages, which has also increased the need for warehouse funding capacity. This capacity has been primarily filled by regional banks with deposit funding. Many of these banks are now pulling back from the warehouse lending market due to liquidity concerns, CRE credit concentrations, and more conservative capital management. We believe the time is NOW to create alternative funding sources for IMBs.