Business and Personal Finance Dictionary

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• WAREHOUSING
  
  the borrowing of funds by a retail lender on a short-term basis using permanent mortgage loans as collateral. This form of interim financing, called a warehouse loan, is used to raise funds to make home mortgages and carry them until the mortgages are packaged and sold "out of the warehouse" to an investor. Proceeds from the sale are used to reduce the warehouse loan.
  
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