Posted 24 November 2004 - 12:31 PM
Posted 24 November 2004 - 06:42 PM
Having said that, my educated guess on the meaning of wet and dry lines goes back to the type of funding that can be had at the time that a residential mortgage loan is closed. In other words, a wet line means that the warehouse lenders advances the funds without having the original signed documents in its possession, while the dry line means that the warehouse lender advances the funds only after it has the documents.
As you can see there is more risk for the lender on a line that allows for “wet funding” than one that does not.
Posted 25 November 2004 - 09:53 PM
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