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?
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.
This helps me a lot thanks for explaining
Great Breakdown DO!
Appreciate it!
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%.
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.