Houtan HormozianExpert on Real Estate, Finance and PropTech

CRESTICO - Question of the day - 03-10-2025

10 Mar 2025 · 1 min

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1:17

The video presents two multiple‑choice questions typical of mortgage licensing exams and supplies the correct answers with brief explanations. The first question defines “warehousing” as the interim financing method where a mortgage company bundles loans and sells the package to permanent investors on the secondary market. The second question clarifies that a mortgage broker is not a lender but an independent agent who arranges loans for borrowers by matching them with suitable lenders. The speaker uses a concise, instructional tone aimed at exam preparation.

Chapters

Question of the day. Question number one: Mortgage company makes a number of loans to be assembled into one package and sold to permanent investors. This process is an example of interim financing to the mortgage company and is called A. Warehousing, B. Blanket financing, C. Discounting, D. Package financing. The answer is A. Warehousing. Warehousing refers to the process whereby banks and other lenders make mortgage loans to consumers for the purpose of quickly selling those loans on them. Secondary market. The warehousing occurs when individual loans are bundled, often with a common element such as the size of the mortgage or creditworthiness of the borrowers, and sold as a single unit. Question number 2: What is a mortgage broker? A. Is a lender. B. Arranges loans for borrowers. C. Buys mortgages and resells them at a profit. D. Buys mortgages in the secondary mortgage market. The answer is B, arranges loans for borrowers. Mortgage brokers function much like independent insurance agents and represent a variety of lenders. Their role is to match the circumstances of individual buyers with the mortgage program best suited to their needs.