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Mortgage Glossary

Warehouse Lending

Mike Starr·Reviewed August 2026

Warehouse lending is a short-term line of credit provided by a bank to a mortgage company (non-bank lender) that allows it to fund new mortgage loans. The mortgage lender uses the warehouse line to originate loans, then repays the line when those loans are sold to investors or GSEs like Fannie Mae. Warehouse lending is the engine that enables non-bank mortgage companies to operate at scale.