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Warehouse line of credit. A warehouse line of credit is a credit line used by mortgage bankers. It is a short-term revolving credit facility extended by a financial institution to a mortgage loan originator for the funding of mortgage loans. The cycle starts with the mortgage banker taking a loan application from the property buyer.
A line of credit is a credit facility extended by a bank or other financial institution to a government, business or individual customer that enables the customer to draw on the facility when the customer needs funds. A financial institution makes available an amount of credit to a business or consumer during a specified period of time.
A warehouse bank account is a bank account at a regular commercial bank in which all clients’ funds are commingled or pooled, for the purpose of concealing the client's ownership of the funds. [1] [2]
A secured line requires collateral, while an unsecured line does not. Your potential credit line depends on several different factors, but it is possible to secure a line as large as $3 million. A ...
Business credit cards: Business credit cards work similarly to a revolving business line of credit, replenishing the amount you can borrow as you pay it back. But if you pay off the credit card in ...
First, multiply the loan amount by the factor rate to get the overall loan amount. Example: $100,000 x 1.4 = $140,000. Step 2: Find the total interest costs. The total interest cost will be the ...
There are a variety of situations in which this distinction is important. For example, a non-depository mortgage lender may fund their operations with a warehouse line of credit, while a distressed loan workout specialist may obtain a line of credit. The first makes loans for the purchase of real property; the second will acquire nonperforming ...
They may either fund it permanently or temporarily with a warehouse line of credit prior to selling it into a larger lending pool. The difference between the "Broker" and "Banker" is the banker's ability to use a short term credit line (known as a warehouse line) to fund the loan until they can sell the loan to the secondary market.