Warehouse Lending Fact Sheet
The liquidity for most home mortgage originations in the United States is provided by "warehouse lending" facilities - a little-known but vital source of liquidity that facilitates the American dream of homeownership.
The warehouse lending business is one of the most important, and perhaps least understood, ways in which insured depository institutions support our nation's housing finance system. Warehouse lenders efficiently and affordably finance the home mortgage lending of independent mortgage bankers (IMBs) through various structured financial solutions, including lines of credit or repurchase agreements that account for more than half of all mortgage originations. Warehouse lending is a low-risk, efficient line of business that promotes competitive housing finance markets, lowers consumer costs, and supports safe and sound lending practices.
In this paper, you will read more about warehouse lending such as:
- Who are Warehouse Lenders?
- How does Warehouse Lending Work?
- Is Warehouse Lending an Expensive Source of Funds?
- Is Warehouse Lending a Safe Line of Business?