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I sat with Ken Walker who has done billions in loans who explained it in detail:
The bank itself has a huge line of credit called a warehouse line. And then it takes huge amounts of money and sells it to Fannie Mae or Freddie Mac and then THEY borrow directly from the Fed.
Loans upon loans upon loans.
The bank itself has a huge line of credit called a warehouse line. And then it takes huge amounts of money and sells it to Fannie Mae or Freddie Mac and then THEY borrow directly from the Fed.
Loans upon loans upon loans.
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