Intro to Mortgage Origination Examinations - June 2022

Liquidity

Warehouse line of credit • Used by lenders • Short-term revolving credit facility • Way to provide loans without using capital • Must be repaid

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Liquidity

Correspondent Lenders

• Originates & closes mortgage loans in its own name, using its own cash • Sell to investor

• Originates & closes mortgage loans in its own name, using investor funds • Assigns loans to investor

Differentiation is the source of the funds.

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