Warehouse lending or “warehouse line” is a line of credit given to a mortgage lender which allows them to fund loans that they originate to a borrower. Once a mortgage loan is funded via a warehouse line, it is expected that the mortgage lender will sell that loan to an end investor and repay the amount taken out on their warehouse line. Due diligence is very important when searching for a warehouse lending partner. Some things to take into consideration is their collateral process, eClose support, tech infrastructure, and interest rates on the line of credit.
For Mortgage Professionals
Lenders are able to fund loans without having the capital on hand to cover each loan they originate leading to faster scalability and growth.
A good warehouse lending partner will help a lender take advantage of market opportunities such as expanding the credit line limit when volume increases.
More tech savvy and innovative warehouse lending partners will support eClose and help make line of credit management easier.
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FirstFunding, Inc is an innovative warehouse lender. Our FlexClose Funding platform allows us to immediately deliver good funds to escrow 24/7, eliminating wire cut off constraints and dependence on the Federal Reserve platform.
The recent announcement from Fannie Mae and Freddie Mac regarding caps on investment and second-home properties has already sent ripples through the mortgage community. In
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