WS redues warelhouse credit lines in the wake of subprime fallout

WS bnks provide warehouse credit lines to mortgage lenders so they can make loans to homeowners. The warehouse provider typically buys most of those loand from the mortgage lenders, holding or "warehousing" them until there are enough to parckage into securities that can be sold to invvestors. Facing the high deliquency rates in subprime mortgage market, WS banks reduce their warehouse credit lines to mortage lenders, especially subprime mortgage lenders. For instance, BoA halved its warehouse line in May. H&R Block Inc.'s mortgage unit lose $1.5 billion credit line.