Not the broker as brokers are not funding sources. But when the broker funds a loan using UWM or Rocket or whoever that lender is funding the loan through a warehouse line and that warehouse lender has a haircut.
That’s a great explanation of how mortgage companies financially function. If most mortgage companies are losing $1,000 to $2,000 per loan and they lose access to warehouse lines, could some of these companies go out of business?
This helps me a lot thanks for explaining
Is the loc secured or unsecured?
mortgage notes are signed by the lenders with a special endorsement to themselves that say pay to the order.
Great Breakdown DO!
Appreciate it!
You lost me on the haircut part. So a mortgage broker, in the same 300k example, has to pay $15k just to fund the loan? Does not make sense
Not the broker as brokers are not funding sources. But when the broker funds a loan using UWM or Rocket or whoever that lender is funding the loan through a warehouse line and that warehouse lender has a haircut.
That’s a great explanation of how mortgage companies financially function. If most mortgage companies are losing $1,000 to $2,000 per loan and they lose access to warehouse lines, could some of these companies go out of business?
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Yes. 100%.