Cable Ties News Trends | Warehouse Lending

Warehouse Lending


What is warehouse lending? Warehouse lending is a line of credit given by a big financial institution to a loan originator. So say your small town local bank is the loan originator, they would get warehouse lending from a bigger financial institution. It’s specialized though. The loan originator must have originated the loan for the borrower to buy property. Mortgages basically. So in a nutshell warehouse lending is when a big bank gives money to a little bank because that little bank originated a loan (to you) for a mortgage.

The loan only lasts for a little while. It lasts until the loan is sold to the secondary market and sometimes it is sold in bundles as a security. Everyone has been using the term warehouse lending lately with it being on the news all the time, and now you know what it means.

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