Warehousing - The process by which a mortgage banker assembles mortgages that they have made and prepares the mortgages to be sold in the secondarymortgage market. By selling these mortgages the originator now has additional capital that can be used to make more mortgages which in turn may also be sold in the secondary mortgage market.
Weighted-Average Coupon - The weighted average of the gross interest rates of the mortgages underlying a pool as of the issue date, with the balance of each mortgage used as the weighting factor.
White Box - The interior condition of either a new or existing building or suite in which the improvements generally consist of heating/cooling with delivery systems, lighting, electrical switches and outlets, lavatories, a finished ceiling, walls that are prepped for painting, and a concrete slab floor. Also called a "vanilla box".
Working drawings - The set of plans for a building or project that comprise the contract documents that indicate the precise manner in which a project is to be built.
Workout - The process by which a borrower attempts to negotiate with a lender to restructure the borrower's debt rather than go through foreclosure proceedings.
Wraparound Mortgage - A method of acquiring additional financing on real estate by placing the additional funds in a secondary or junior position to the existing debt. As its name implies, a wraparound mortgage 'wraps around' an existing first mortgage plus the amount of the new secondary or junior lien. This method of obtaining additional capital is often used with commercial property where there is substantial equity in the property and where the existing first mortgage has an attractive low interest rate. By obtaining a wraparound, the borrower receives dollars based on the difference between current market value of the property and the outstanding balance on the first mortgage. Thus, the borrower reduces the equity and at the same time obtains an interest rate lower than would be possible through a normal second mortgage. The lender receives the leverage resulting from an interest rate on the wraparound greater than the interest paid to the holder of the first mortgage.
Write-down - The accounting procedure used when the book value of an asset is adjusted downward to better reflect current market value.
Write-off - The accounting procedure used when an asset has been determined to be uncollectible and is therefore charged as a loss