What it is:
Warehouse lending is lender sells them in the secondary .provided to a to mortgages until the
How it works (Example):
Let's say John Doe goes to Bank XYZ to borrow $200,000 to buy a house. Bank XYZ gives him the loan, but it does not lend him its own . It borrows the money from a warehouse . Two weeks later, when Bank XYZ sells the mortgage to another lender, it receives cash that it uses to repay the warehouse lender. Bank XYZ profits by earning points and origination fees.