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