what is mortgage banking industry
A mortgage bank is not regulated as a federal or state bank and does not take deposits from consumers or businesses. A mortgage bank raises some equity which it uses to guarantee the warehouse line and the bulk of the funds are provided by the warehouse lender. A mortgage bank can vary in size.he secondary market investor that buys the loan will earn revenue for the servicing of the loan for each month the loan is kept by the borrower. Unlike a federally chartered savings bank, a mortgage bank generally specializes only in making mortgage loans.