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Questions about Warehouse Lines of Credit
How does a Warehouse Line of Credit work?
The mortgage loan is originated and underwritten to investor standards based on sound QC procedures, then it is delivered to the Warehouse Lender in exchange for funding the closing of the mortgage note. A Warehouse Line is a Credit Line used to fund loans at the closing table. After the investor wires funds to the Warehouse Lender to purchase the loan, an accounting is done to reconcile the cost and fees for the line, and then the proceeds including the Service Release Premium are forwarded into the account of the Mortgage Banker. The note is carried or housed on the warehouse line of credit for a period of time (usually 7 to 21 days) until it is called for delivery to the investor. As a Mortgage Banker with warehouse lines of credit you will be involved in a close relationship with the Warehouser and you will be responsible for many closing and logistical functions. You must deliver closed loans to your investor. The MBS Group with warehouse lending specializes in providing warehouse lines of credit to existing and emerging mortgage bankers nationwide.
A warehouse line of credit is a revolving line of credit. Money is borrowed on a warehouse line of creditand added to your bottom line with a warehouse line of credit. Learn more about the warehouse lines of credit provied by MBS. We have the cash flow for a warehouse line and credibility needed to make the leap. The process of moving notes on and off the line is called the monthly flow. The payoffs must be calculated, the wires or checks must be made, and the exceptions and problems must be reconciled in order to take the loan off the line and deliver the loan to the investor. Those loans must be funded and shipped along with the closing documents and delivered to Escrow and the Warehouser.
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The MBS Group offers numerous programs how a warehouse line of credit works, contact us today.
