The Warehouse Line Clause Samples
The Warehouse Line clause establishes a credit facility that allows a lender, typically a bank, to provide short-term funding to a mortgage originator for the purpose of funding mortgage loans until they are sold to investors. In practice, the originator draws on the warehouse line to close individual loans, using the loans themselves as collateral, and repays the line as the loans are sold or securitized. This clause is essential for ensuring liquidity in the mortgage origination process, enabling originators to fund loans without tying up their own capital, and facilitating the efficient transfer of loans to the secondary market.
The Warehouse Line. (a) Subject to the provisions of Section 2.13 and the other terms and conditions of this Agreement, the Banks agree to make and continue loans to the Obligors under the Warehouse Line in aggregate principal amounts outstanding on any day of up to Five Hundred Million Dollars ($500,000,000) (the "Facility Limit") for each day until May 27, 2000 (the "Warehouse Termination Date") solely (1) to finance each Obligor's funding of such Obligor's own Residential Mortgages that are Eligible Mortgages originated by such Obligor to (or for the account of) the obligor(s) on such Eligible Mortgages, (2) to finance such Obligor's own purchase of Eligible Mortgages that were not originated by such Obligor, and (3) for the other purposes set forth in Section 2.3 and for no other applications or purposes.
(b) Each Obligor agrees to use the credit extended to it as a Mortgage Warehouse Loan to carry each Residential Mortgage only for so long as (x) it continues to satisfy all of the requirements to be an Eligible Mortgage and (y) the borrowing Obligor is diligently taking all steps necessary to complete either (i) the sale of that Residential Mortgage (if the Investor Commitment covering it contemplates its purchase as a whole loan), or (ii) its securitization as part of a pool of Residential Mortgages (a "Pool") and the sale of the resulting Mortgage-Backed Securities (if the Investor Commitment covering it contemplates securitization of a Pool that includes such Eligible Mortgage and the Qualified Investors purchase of the resulting Mortgaged-Backed Securities).
(c) The Banks' commitments are several and not joint, no Bank has any obligation under this Agreement to fund any part of any other Bank's commitment for the Warehouse Line or otherwise, and the respective commitments of the Banks and the sublimits applicable to those commitments are set forth on the Commitments Schedule.
(d) The failure of any Bank to fund any part of its commitment for the Warehouse Line shall not in itself relieve any other Bank of its obligation to fund its commitment for the Warehouse Line; provided, that no Bank shall be responsible or incur any liability whatsoever for the failure of any other Bank to fund any of its Funding Shares or make any Loan that such other Bank is obligated to fund or make.
(e) The maximum credit henceforth available on any day under the Warehouse Line (including credit under the Sublines and Sub-sublines) is and shall be:
(1) the Facility Limit for that day;
(2) t...
The Warehouse Line. Section 2.1 General Terms for the Warehouse Line and its Sublines and Sub-sublines. This Article sets forth terms and conditions governing the Obligors' Warehouse Line, its Swing Subline, its Wet Warehousing Subline, its Second- Lien Subline, its Receivables Advances Subline (and its five Sub-sublines: (a) the P&I Sub-subline; (b) the T&I Sub-subline; (c) the VA/FHA/PMI Foreclosure Receivables Sub-subline, (d) the Repurchased Defaulted Mortgages Sub-subline) and (e) the Foreclosed Properties Sub-subline) and its Subprime Mortgages Subline (the Swing Subline, the Wet Warehousing Subline, the Second-Lien Subline, the Receivables Advances Subline and the Subprime Mortgages Subline being the "Sublines") and the P&I Sub-subline, the T&I Sub-subline, the VA/FHA/PMI Foreclosure Receivables Sub-subline, the Repurchased Defaulted Mortgages Sub-subline and the Foreclosed Properties Sub-subline of the Receivables Advances Subline being the "Sub-sublines") requested by the Obligors and approved by the Warehouse Banks. Its provisions are subject to the other terms and conditions of the Current Facilities Agreement.
The Warehouse Line. Section 2.1 General Terms for the Warehouse Line and its Sublines and Sub-sublines. This Article sets forth terms and conditions governing the Obligors' mortgage warehousing revolving credit facility (the "Warehouse Line"), its Swing Subline, its Wet Warehousing Subline, its Second-Lien Subline, its Receivables Advances Subline (and its four Sub-sublines: (a) the P&I Sub-subline; (b) the T&I Sub-subline; (c) the Foreclosure Receivables Sub-subline,
The Warehouse Line