The Mortgage Bankers Association is calling on the government to guarantee warehouse lines of credit that provide independent lenders with short-term funding to originate loans.Warehouse lending capacity is about one-tenth what it was two years ago, having shrunk from $200 billion to between $20 billion and $25 billion, said MBA president and CEO John Courson in an editorial published by The Washington Times.Warehouse lenders provided intermediate funding for some of the riskiest loans made during the housing boom, including subprime and alt-A loans packaged into "private label" securities and sold to secondary-market investors. But the contraction in warehouse funding capacity is also limiting the ability of lenders to meet the current demand for refinance loans, Courson said, and has a "devastating" impact on homebuyers, sellers, builders, and "every other entity in the homebuying process."Warehouse lines provide funding for about 1,000 independent, non-...
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