Bank Liquidity and Financing of Nonbank Mortgage Companies

Alessandro Rebucci, Horacio Sapriza, Alex Sclip () and Daniel te Kaat
Additional contact information
Alex Sclip: https://www.dima.univr.it/?ent=persona&id=71738&lang=en

Richmond Fed Economic Brief, 2025, vol. 25, issue 33

Abstract: Nonbank mortgage companies (NMCs) are directly funded by banks and have significantly expanded their shares of the residential mortgage market. Bank liquidity helps drive the warehouse credit market for NMCs financing. We examine the COVID-19 shock and the subsequent boom in the mortgage market and find that banks with ex-ante higher liquidity expanded less aggressively in supplying credit to NMCs. This lower credit expansion is stronger for smaller NMCs with fewer banking relationships.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.richmondfed.org/publications/research/economic_brief/2025/eb_25-33 Briefing (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedreb:101480

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in Richmond Fed Economic Brief from Federal Reserve Bank of Richmond Contact information at EDIRC.
Bibliographic data for series maintained by Christian Pascasio ().