Not only are residential loan applications booming, but nonbank lenders increasingly are tapping their warehouse providers for additional credit.
Some warehousing firms have doubled their commitment requests compared with three months ago.
"We're expecting August to be a big closing month," said Paul Best, senior executive in charge of warehouse lending at People's United Bank in Bridgeport, Conn. "We're bracing for a lot of wires." People's has upward of $475 million in warehouse commitments, versus about $100 million earlier in the year. "We're averaging about two new accounts a month," Best said.
