MBA Chart of the Week: Fundings on Warehouse Lines for First Mortgages Held for Sale
Source: MBA Warehouse Lending Survey
In the second quarter, warehouse lenders funded an average of $5.86B on their lines for first mortgages held for sale, the highest level since the second quarter of 2022. This new data comes from MBA’s quarterly Warehouse Lending Survey, which tracks volume, product mix, dwell time, and more.
This week’s Chart of the Week overlays MBA’s originations estimates over fundings on warehouse lines for first mortgages held for sale for the period from 2020 to 2026. The trend in the chart consistently shows the close relationship between industry originations volume per MBA (black line) and fundings on warehouse lines for first mortgages held for sale (blue bar), given non-depositories’ dominance in the market, which now stands at 68% of all loans.
Data on warehouse lending activity helps shape MBA’s origination estimates and forecast. Additional insights from the survey – such as product mix – provide color into what’s driving the market. As of the end of the second quarter, purchase transactions accounted for 78% of outstanding balances on warehouse lines, a 16 percentage point increase from 62% as of the end of the first quarter, as the Spring homebuying season started. There was also an increase in fundings for non-QM and DSCR (debt-to-service coverage ratio) loans from 17% of fundings in Q1 to 18% of fundings in Q2.
MBA recently made its quarterly report available to the public. Those interested in the full dataset can purchase the most recent report for Q2 or subscribe to the survey to receive timely updates. If you are a warehouse lender that is interested in receiving this data, please participate in our survey.
Contact Jon Penniman at jpenniman@mba.org or (202) 557-2943 for more information.
