Introduction to Mortgage Origination Examiniations

Internal Use Only

Liquidity

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

Internal Use Only

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.