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Special Reports
In this section of BrokerUniverse we examine a subject of key importance
for mortgage originators every month, based on special reports that run in our sister publication, Origination News.
Warehouse Lending
Getting Funds to the Lender
The portion of the mortgage origination process that is most hidden from the consumer
is how their loan gets funded. They show up at the closing table and, like magic, several checks appear to cover
the price paid to the seller, fees due and other miscellaneous items.
While there are several mechanisms available for funding loans, the most common is the warehouse line of credit,
a loan that is used to provide the money for a loan.
The warehouse lender moves money from its account over to the mortgage lender's (these days by wire transfer) and
the lender turns around and cuts checks.
In discussions with some warehouse lenders, there are two trends appearing. The first is the demand for new credit
is increasing. But the outstandings, the actual draws on the line is stable or even declining.
The broker-to-banker move up market is still one of the things driving demand for warehouse credit, especially
as we enter another fall without RESPA reform and without the YSP issue being resolved to the broker industry's
liking.
In this Special Report, we have the latest data from our friends at the Mortgage Industry Directory on warehouse
lending.
In addition, there have been changes at the top with a pair of warehouse lenders. There are interviews with these
executives here.
Then there is WarehouseUSA, which has just adopted some new technology from Street Resource Group.
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