Has anyone heard of banks not having money to fund loans?? A co-worker of mine is CTC on a purchase that was scheduled for today.. Interbank..(Lender) just informed him that they are not funding any new loans until Feb11 because they don't have any funds available on there line.. Does anyone know if other lenders are having the same issues? My concern is I have 2 loans currently being underwritten with this bank.. Should I be concerned about this bank going out of business, or funding loans later in the month? Any feedback would be greatly appreciated...

Too much volume. Probably taking longer as well for settlements from FNMA/FHLMC, so Lenders are not able to clear their warehouse lines as quickly as needed.

If they don't start funding loans by the 11th...plan B would be appropriate as they may not have the enough money on their warehouse line(s) to handle all the loans in waiting.

Lenders are not able to sell loans off quick enough on the secondary market... The warehouse lenders are not extending any of thier lines, if a refi boom does hit - and I think it will, you want to diversify who you are sending loans to.

There is a vast difference between a bank and mortgage company or lender.  The situation you describe will be a common problem going forward as mortgage companies and lenders run out of funds.  The simple reason is that they rely on credit lines.  A bank utilizes deposits to fund loans as well as lines of credit and direct access to the fed.  Banks will never leave you high and dry when you are CTC as they have many funding lines available to them instead of just one.

Gary Paetzold:

if a refi boom does hit - and I think it will

You mean a bigger boom than what we are seeing now?

Kent - I do think we will see a bigger boom. I know in my market there is a ton of borrowers on the sidelines waiting for the bottom to fall out. But in time they will realize it still make a TON of sense to push the button where rates are currently at.

Gary Paetzold:

Kent - I do think we will see a bigger boom. I know in my market there is a ton of borrowers on the sidelines waiting for the bottom to fall out. But in time they will realize it still make a TON of sense to push the button where rates are currently at.

I agree.  What's funny is that a lot didn't learn during the last refi boom.  They say they will call when rates drop (if they do).  I have to keep reminding them that if we don't have an application, credit pulled and income docs; we won't be locking their loan.  Not to mention, if we had a rate drop to 4.5% with $0 origination or lower, it will take them time to figure out that rates have hit that point.  By that time we are going to be swamped and it is going to take some time to get to them.

One of things I have done for my personal database is a "Rate Drop Disclosure" that I made myself that I include on all of my closings. Basically it states I have the right if I see fit to put together an application if I feel they would benefit for a rate/term refi. Since I have been doing this my capture rate has been great! The funny thing is I rolled this out to my LO's and half of them aren't using it...

Yes...I had a commercial multi family with them last month---however I had to aggressively move the deal into another channel that still has funds available!

I've heard that some Taylor Bean files have had funding issues lately.

TBW is having funding issues.  We have a refi that was to disburse on Monday and we still don't have funds.  Emails and phone calls are not being returned by TBW staff.  Our AE's voice mail box is full and cannot accept new messages.

Kim we had this issue with three files last week. The delays from 1-2 days were always blamed on the title company not completing something, or get this the title company never requested a wire. What a mess for sure. I really like TBW but get a little scared when things like this happen after what happened at JB Nutter.

We had that happen with ABC Conduit just before they folded

We heard Taylor Bean is having computer issues near the end of the month to delay funding refinances only. Purchases we hear are still going through but this trend appears to becoming more common as lenders try to free up warehouse lines and sell off current loans.

Most of the files that I work with go through TBW.  We are experiencing painfully slow turn times as I'm sure everyone is.  I, for one, do not think the slow turn times are a result of the current volume solely but a combination of the volume and lack of funds. 

On a side not, TBW has never been number 1 in customer service.

Last week my Chase person told me Chase "was basically out of the market" and could only offer 5 +1% to match what Wells Fargo was offering. The quoted rates are higher now than a couple months ago even though the "national avg." and MBS numbers indicate the rates should be lower.....