It also follows that care should be taken as to which loans go on the warehouse line because an investor may refuse to purchase a loan which has not been properly QC'd. In most instances staff training is also required, as deeply entrenched operational procedures must often be modified to accommodate program requirements. How to Choose The real issue for any originator wishing to take their company to the next level is strategic alliances. Consequently, the stability of the warehouse lender as a long-term, consistent funding source should be evaluated and considered. Murphy's Law still prevails, and it is at those times of market uncertainty when the performance of the warehouse lender is most critical.
Pricing is as much art as science.
In other words, while all warehouse lenders have certain minimum pricing thresholds, flexibility should exist as to the individual rate and fee components. An often overlooked but critically important component is the operational impact of the warehouse program on the originator's back office. Warehouse programs are not all created equal and the demands on your processing staff can differ greatly. E-Designs by TheArchGroup .