Dictionary of Real Estate Terms: warehousing (loan)
warehousing (loan)
the packaging of a number of mortgage loans for sale in the secondary mortgage market by a financial institution or mortgage banker who has originated the loans.
Example: Willard, a mortgage banker, is regularly engaged in loan warehousing. He would originate a number of FHA-insured mortgages and sell the package to FNMA at auction. After origination but before the sale to FNMA, the loans are considered to be in Willard's warehouse.
