what is warehouse lending 
warehouse lending is a line of credit given to a loan originator the funds are used to pay for a mortgage that a borrower uses to purchase property the life of the loan generally extends from its origination to the time it is sold on the secondary market either directly or through securitization the repayment of warehouse lines of credit is ensured by lenders through charges on each transaction in addition to charges when loan originators post collateral understanding warehouse lendinga warehouse line of credit is provided to mortgage lenders by financial institutions the lenders are dependent on the eventual sale of mortgage loans to repay the financial institution and to make a profit for this reason the financial institution that provides the warehouse line of credit carefully monitors how each loan is progressing with the mortgage lender until it is sold warehouse lending is not mortgage lending a warehouse line of credit allows a bank to finance a loan without using its own capital 