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  • 1.  Warehouse Lenders considered Vendors ?

    This message was posted by a user wishing to remain anonymous
    Posted 10-08-2021 01:22 PM
    This message was posted by a user wishing to remain anonymous

    Are warehouse lenders considered as a vendor ? if they are considered vendors are they also considered critical or non critical ? I wanted to see how other industries are treating warehouse lenders.


  • 2.  RE: Warehouse Lenders considered Vendors ?

    Posted 10-12-2021 12:25 PM

    Warehouse lenders should be considered "vendors." To simplify this for other members who may not be familiar, a warehouse lender provides short-term loans to an organization so they can provide a loan to a customer without using their own capital. Typically this is done for a mortgage that will be sold to another organization. So the product or service is money, and your organization is the customer. So yes, a vendor. (Keep in mind that while many organizations may consider warehouse lenders out of scope today, the proposed interagency guidance requires all third-party relationships, except for customers, to be in scope).

    To determine if they are critical, you need to how much your organization depends on a particular warehouse lender. If mortgages are a substantial part of your business and you wouldn't be able to offer those mortgages without the lender, they would be critical. Organizations generally have more than one warehouse lender, so it is hard to say what is right for any particular organization. Still, I hope this information is helpful

    I would love to hear from members who use one or more warehouse lenders.