The ongoing tumult in the banking industry brought to light by the recent failures of Silicon Valley Bank and Signature Bank — the second and third largest bank failures in U.S. history, respectively — also threatens liquidity channels for the independent mortgage banks (IMBs).

Two banks that rank among the nation’s top warehouse lenders were recently singled out by Moody’s Investor Service for potential ratings downgrades due, in part, to their reliance on “confidence-sensitive uninsured deposits”; the material “unrealized losses” linked to now-devalued bonds held in their investment portfolios; and their “relatively lower level of capitalization.” 

The nation’s warehouse lenders are a lifeline of liquidity for the nonbank details ⇒

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