How a Mortgage Warehouse Line Works:

1. You submit a pre-funding package to us.
2. Once the package is reviewed for compliance, the funds are sent directly to the approved settlement agent.
3. When the mortgage loan is closed, the settlement agent sends the original mortgage note to us, endorsed in blank, and a copy of the HUD-1. The balance of the package is sent to you.
4. You post-close the mortgage loan and prepare it for delivery to the investor.
5. When you ship the credit package, you fax us delivery instructions for the note.
6. We complete the endorsement and ship the note in accordance with your instructions, accompanied by our bailee letter to the investor.
7. The investor transfers the purchase proceeds to our collection account.
8. We deduct the warehouse facility principal, accrued net interest and warehouse fees due us. The balance, your profit, is transferred to your bank account. We electronically send or fax you a report showing all receipts, deductions and transfers on a loan-by-loan basis.
9. The warehouse facility principal is now available for you to fund other mortgage loans.