In one sentence
A lender providing short-term financing to originators to fund loans before they are sold or securitized.
The longer version
Warehouse lines let originators fund loans without tying up their own capital, repaying the line when loans are sold to investors or into securitizations. The warehouse lender's collateral is the loans themselves.
Warehouse mechanics add a layer of collateral and reporting around origination that operates behind the borrower-facing deal.
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