👉 I'll do my best to break down the term "mortgage warehouse lending," with humor.
Mortgage warehouse lending is a strange, scary phenomenon, where people use banks to borrow money they don't have, usually without any intention of paying back that borrowed money. It's as if a bank is a storage yard for a bunch of unwanted debtors, waiting for someone else to come along and take over their debts. Imagine if you were at a store trying to buy a new bike but had no spare change in your pocket. Instead of going to the store with your old bikes and paying cash for them, you went to the bank and borrowed money from it. Now imagine that person who was waiting for you to return their stolen goods and didn't want to pay any interest or penalties. They decided instead to take out a loan on your car, thinking they would be able to fix up your bike as soon as it broke down. So there you have it - the bizarre world of mortgage warehouse lending. It's like being a bank with a bad habit, but it's worse because you're doing it anonymously. But hey, at least it's not stealing from you!
