The process by which a warehouse mortgage lender originates loans in the primary mortgage market, with the intention of selling those loans to the secondary mortgage market when a minimum volume is achieved. The business model of such lenders is focused on originating loans, not servicing them. Warehouse lenders usually have forward commitments with investors in the secondary market to provide those investors with qualified loans. For more information, see the "History of the Mortgage Industry" article in the "Mortgage Industry" section.
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