Thursday, January 10, 2008
Countrywide's lender pull back its credit line
Southwest Securities FSB, a lender based in Arlington, Texas, said yesterday it is in the process of removing Countrywide and IndyMac Bancorp from its list of approved loan investors. Firms such as Southwest, known as "warehouse lenders," act as middlemen, offering short-term financing to mortgage banks, which then sell their loans to Countrywide and other bigger lenders or investors. Southwest said it would honor any loans with interest rate "locks," or commitments, dated Friday, Jan. 11, or earlier.