WA REHOU SE FL O WCH A R T
SecuritizationDay 1 Activities
Mortgage Lender and Closing Agentprepare closing docs Loan is closed with an
insured Closing Agent
Bank sends funds to Closing Agent
Mortgage lender submits trust receipt to bank
Loan disbursement is recorded in bank’s records
Bank adds trust receipt to warehouse file
At this point, the loan is deemedto be “wet funded” until allcollateral documents arereceived from closing table
WA REHOU SE FL O WCH A R T
SecuritizationDay 2–8 Activities
Documents are shippedto Warehouse Bank
Closing Agent completes closing documentationincluding collateral documents
Documents are stored in fireproof vault Warehouse Bank approvescollateral package
Warehouse Bank reviewsdocuments for completeness
Documents placedin warehousecollateral file
At this point, the loan is deemedto be “dry funded” and bank’srecords are updated
WA REHOU SE FL O WCH A R T
SecuritizationDay 5–15 Activities
Warehouse Bank informs Mortgage Lenderof initial pool certification
Custodial Agent initiallycertifies pool
Files for loans going intoan MBS pool
Files are reviewed for completenessand pool eligibility at Custodial Agent(usually another department withinthe Warehouse Bank)
At this point, the pool isinitially certified andWarehouse Bank updatesrecords to indicate that theloan is in “gestation” phase
WA REHOU SE FL O WCH A R T
SecuritizationGenerally around Day 30
Mortgage-backed security(MBS) is issued
Bank makes loan paid off, sends net proceeds to Mortgage Lender
Delivery of MBS to Investorand Settlement of Trade Forward Sale Commitment