The rapid consolidation in mortgage banking is hitting hard at the banks that lend to the industry.

Demand for "mortgage warehouse" lines of credit, which are used to fund loans awaiting sale into the secondary market, is down sharply, bankers say.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.