An approach for managing warehouse lending operations

August 2010
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An approach for managing warehouse lending operations

At a glance

PwC's article reviews the warehouse lending operating model and discusses the steps organizations may consider in creating a lending operational platform that effectively manages risk.

As record profit margins in mortgage warehouse lending attract lenders and investors, concern mounts throughout the lending community regarding de novo entrants that lack warehouse lending experience. Many new entrants appear not to grasp the importance of establishing controls relating to common business practices and safety and soundness guidelines that are critical to loss mitigation and profitability in warehouse lending.

In this article, we review the warehouse lending operating model and discuss the steps organizations may consider in creating a lending operational platform that effectively manages risk.