Mortgage bankers have been facing repeated threats of Community Reinvestment Act legislation regulation virtually alone, but now others are being targeted also, the latest being warehouse lenders. Federal Reserve Governor Lawrence B. Lindsey, addressing the National Association of Affordable Housing Lenders in Washington June 6, said the Fed was considering including wholesale lenders in revised CRA reform regulations. Warehouse lenders provide funds to bankers and other mortgage lenders on a short-term basis but because they do not make direct consumer loans, they may prove difficult to place under CRA regulationsa point Lindsey acknowledged. Nonetheless, the Fed was looking at that option, he said.
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