How does a warehouse line work?
• The mortgage banker originates locks (with the investor) and processes the loan. • The mortgage banker or the investor underwrites the loan. • The mortgage banker draws closing documents in its own name and schedules the closing at an insured title company or insured closing attorney. • The mortgage banker requests funds from its warehouse lender via a funding request form including: the purchase commitment, underwriting approval, first two pages of the appraisal, application, score page of the credit report, and an insured closing letter. • The loan funds and closes. The original note is delivered to the warehouse lender from the title company. Such procedure is mandatory. • The title company sends to the mortgage banker a copy of the note and all other closing documents. • The mortgage banker delivers the loan package to the investor. • The warehouse lender ships the original note to the investor including a trust receipt with wiring instructions to wire the purchase proceeds to th
