Warehouse Lender
                     FundingShield: The Best Warehouse Mortgage
Lender in the Industry
Warehouse lending is just another form of loan albeit with a difference. It allows
small- and medium-size banks to grant loans with a slight change. They grant loan
without looking at making profit through charging interest for decades. Rather
they prefer to make their money from origination fees and the sale of the loans.  
Warehouse lenders need banks to arrange for collateral. Most of the times, it is
the banks; marketable securities and loan documentation.
FundingShield  is  one  of  the  top warehouse  lender and  It  aims  at  providing
superior warehouse lending services nationwide. Their  warehouse facilities are
short-term credit facilities secured by real estate collateral that allows mortgage
bankers to fund loans in their own names
What is warehouse mortgage lending?
 Warehouse mortgage lending actually refers to a specialized line of credit
that  certain  larger  banks  and  institutional  lenders  provide  to  mortgage
bankers.
 A mortgage lender that wants to open up a storefront and start making
mortgage loans  to  borrowers  needs  cash.  A  line  of  credit  provides  that
needed cash. The mortgage banker earns the bulk of its money from the
origination fees charged when the loan is made.
 Funding can either be as “dry funding” or “wet funding”.
The Advantages
 The warehouse lender is able to earn fees and/or expand its loan portfolio
without the overhead expense of a larger staff and branch office locations.
 The mortgage lender has access to the cash it needs to keep making an
unlimited  volume  of  loans.  The  arrangement  in  general  expands  the
universe of mortgage lending options for borrowers. 
The Disadvantages
 A  warehouse  lender  runs  the  risk  that  the  mortgage  originator  fails  to
maintain appropriate credit standards and adequately screen its borrowers,
therefore making a lot of bad loans that end up on the warehouse lender’s
books.
 This  arrangement  can lead to fraud,  particularly  if  a  mortgage lender is
dishonest or is in collusion with a local title agency, appraiser, real estate
agent or even the borrower. Paperwork can be falsified and the fraud isn’t
always  obvious.  Wet  funding  of  mortgage  loans  is  more  susceptible  to
fraud so a warehouse lender needs to carefully screen the originator to
minimize its risk.
    While the potential upside of providing warehouse lending makes such lines of
credit worth a closer look, a warehouse lender needs to act prudently to minimize
its exposure to the potential fraud and other risks inherent in such arrangements
      FundingShield’s Warehouse Lending Program offer exceptional, personalized
service, with quick local-decision making and flexible funding that has generated
excellent results for lenders across the nation.