What is Warehouse Lending?
Warehouse lending is lender sells them in the secondary .provided to a to mortgages until the
How Does Warehouse Lending Work?
Let's say John Doe goes to Bank XYZ to borrow $200,000 to buy a house. Bank XYZ gives him the loan, but it does not lend him its own . It borrows the money from a warehouse . Two weeks later, when Bank XYZ sells the mortgage to another lender, it receives cash that it uses to repay the warehouse lender. Bank XYZ profits by earning points and origination fees.
Why Does Warehouse Lending Matter?
Warehouse lending helps banks make loans rather than earning interest and servicing the for 30 years., especially small- and medium-size banks that prefer to make their from origination fees and the sale of the