Building Stronger Warehouse Lending Relationships: A Perspective from the Front Lines

By Susan Johnson
Senior Vice President, Scale Bank

Scale Bank has been a reliable warehouse provider to the mortgage industry for over three decades, and I’ve had the privilege of working in this space for just over 20 years. We’ve seen the industry evolve through market booms, downturns, regulatory shifts, and technological innovations. One thing has remained constant throughout it all: the importance of strong, stable, and transparent relationships between warehouse lenders and mortgage bankers.

In a recent webinar hosted by CWDL, I had the opportunity to share some thoughts on where the industry stands today. I wanted to take a moment to reflect on a few key themes from that discussion, particularly from my vantage point as a long-time warehouse lender dedicated to building partnerships that stand the test of time.

Profitability Is Improving for Mortgage Bankers, but Sustainability Matters

There’s no question the past few years have been challenging for independent mortgage bankers. But we’re encouraged by what we’ve seen recently: many mortgage bankers have worked their way back toward profitability—not necessarily because volumes are growing, but because they’ve tightened operations, cut costs, and managed their margins carefully.

Still, the gains are delicate. They need to help stay vigilant—monitoring liquidity, preserving cash, and remaining nimble enough to respond if volatility returns.

Communication: The Cornerstone of Every Relationship

If there’s one piece of advice we could give to every mortgage banker, it’s this: communicate early and often with your warehouse bank. Communication should never happen only when there’s a problem.

I’ve had clients call me before sending in financials to say, “Heads up—you will see this in the statements I’m going to send to you. Here’s why. Here’s my plan to fix it.” That proactive approach makes all the difference. It builds trust, makes it easier for us to advocate internally, and turns a potential issue into a conversation.

It’s also essential to maintain contact even when things are going well. A quick check-in every 30 to 60 days can open the door for valuable dialogue—whether it’s discussing a new product, adding a loan officer, or simply benchmarking ideas. Your warehouse bank isn’t just a lender; we’re a resource that works with a number of companies and can often provide broader insights.

Communication is a two-way street. We don’t sit back and wait for the phone to ring; we actively reach out to clients to stay ahead of issues and opportunities. That openness creates a real and lasting partnership.

Managing Counterparty Risk: Looking Beyond the Balance Sheet

Another area where we see growing importance is in evaluating counterparty risk. It’s not just about you—it’s the ecosystem you work within and the partners you choose to work with.

We’re asking our clients:

• Who are your investors, closing agents, broker/dealers, MI companies, and technology providers?
• How are you vetting and evaluating them?
• Do you have a process for managing counterparty risk with your key partners?

We also discuss the importance of choosing vendors, insurance providers, and accounting firms with experience in the mortgage industry. In the mortgage industry, specialized knowledge matters. We’ve seen situations where well-meaning clients rely on insurance or accounting professionals who do not have a lot of experience in mortgage banking. That can lead to gaps or unintended exposure.

Our message to mortgage bankers is this: surround yourself with partners who understand your business. That’s true not only for warehouse lenders but for every key partner you rely on.

Supporting Our Clients for the Long Haul

At the end of the day, our goal is simple: to be a partner, not just a provider.

We’re committed to staying in this space, meeting our clients where they are, and offering solutions that fit evolving needs. Whether it’s integrating our warehouse systems with your loan origination platforms for more seamless funding or simply being available to brainstorm through a challenge, we’re here to support.

To every mortgage banker navigating today’s environment: keep the lines of communication open. Use your warehouse bank as a resource, not just a funding source. Ask questions, share challenges, and don’t hesitate to lean on our experience. Together, we can build stronger, more resilient businesses—no matter what the market brings.

Meet Susan Johnson

Susan Johnson is Senior Vice President at Scale Bank, where she partners with mortgage bankers nationwide to support their growth and stability.

Partner with Susan Johnson and the Scale Bank team for trusted warehouse funding.

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