When a lender who's primary aim is to pool mortgages to resell or commit them to a Mortgage Back Security and then service the mortgages uses a funding vehicle called a:

Question

Quizplus · Accepted Answer

A mortgage conduit is a funding vehicle used by mortgage lenders who pool mortgages for resale or packaging as mortgage-backed securities. The goal of a mortgage conduit is to allow lenders to free up their own funds for additional lending while still earning revenue from the mortgage payments. REMIC (real estate mortgage investment conduit) is a regulatory regime for the pooling of mortgage loans and issuance of mortgage-backed securities, while Ginnie Mae is a government agency that guarantees mortgage-backed securities issued by federally-sponsored entities. A warehouse line is a type of credit facility that allows a lender to borrow funds from a financial institution to fund a mortgage loan before the loan is sold to a permanent investor. While all of these terms are related to mortgage financing, only mortgage conduit accurately describes the funding vehicle described in the prompt.

When a Lender Who's Primary Aim Is to Pool Mortgages