jhonsmith022
2 posts
Jun 22, 2023
9:14 AM
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Warehouse Lending refers to a form of short-term funding provided by financial institutions to mortgage lenders. In this arrangement, the mortgage lenders can borrow against the collateral of mortgage loans they have originated but have not yet sold to investors in the secondary market. Warehouse loans are typically used to bridge the gap between the origination of a mortgage loan and its sale. These loans allow mortgage lenders to free up their capital and continue originating new loans, as they can use the warehouse funds to cover the costs associated with loan processing and servicing. Warehouse lending plays a vital role in the mortgage industry by providing liquidity and ensuring a steady flow of funds for mortgage lenders, enabling them to meet the demand for home financing and support the housing market.
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