Ally Bank is telling clients that it is exiting the warehouse lending business but it will give them time to secure new lines of credit from other lenders.
Ally spokeswoman Gina Proia told ASR sister publication, NMN, the bank will honor its current warehouse commitments. “We are trying to work with our clients to give them a reasonable time frame to find other sources,” Proia said Tuesday morning.
“We expect that the wind-down process will be completed by the end of this year.”
The Midvale, Utah, bank has 70 warehouse clients.
Ally Bank will continue to purchase loans through its correspondent and wholesale channels. “There will be no change to those businesses as a result of this action,” the spokeswoman said.
In the first quarter, Ally Bank purchased $4.9 billion in loans through its correspondent lending channel, according to NMN’s data group.