Question

A 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:

Answer 1

Answer:

The correct answer to the following question is warehousing.

Explanation:

Warehousing can be defined as process in which banks and lenders would provide mortgage loans to consumers , with the intention of quickly selling those loans in the secondary market. Here the individual loans would be bundled together based on some common element like size of the mortgage or the creditworthiness of the borrowers and all these loans would be sold as a single unit.