Who Pays The Seller?
In this informal dialogue, Gianna Miceli and a co‑speaker unpack how a home seller (illustrated as Mickey Mouse) receives payment when a buyer (Donald Duck) purchases a property. They clarify that the seller is paid by the party that purchases the loan, not directly by the bank’s deposits. The conversation touches on various funding methods—warehouse funding, table funding, and lines of credit—explaining that banks use external capital rather than their own deposited money to fund loans. They also discuss the role of servicers, the ownership of loans by entities like Fannie Mae, and the distinction between being named on a note versus the loan’s actual owner. The overall aim is to demystify the flow of money in mortgage transactions and correct common misconceptions about bank funding sources.
