Temporary Lender

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Dictionary Says

Definition of 'Temporary Lender'

A mortgage lender that sells the loans it originates into the secondary market shortly after closing, as opposed to holding the loans in portfolio. Most lenders are temporary lenders. 

These lenders have a few options when selling loans. Security dealers may be willing to purchase the loans for the purposes of securitizing the assets for resale to investors. Other lenders may buy the debt and hold it in their portfolios. The temporary lender may also sell its loans into its own trust, as part of a securitization process.
Investopedia Says

Investopedia explains 'Temporary Lender'

Temporary lenders make money in three primary ways. First, they charge fees to the borrower. Second, they originate loans at interest rates above par value which allows them to sell the loans into the secondary market for a premium price (the loan is worth more in the secondary market than the actual principal balance of the loan because of the above par interest rate). Third, depending upon the slope of the yield curve, they earn a warehouse spread for the time in which they are the holder of record of the loan (the interest rate on the loan is higher than the interest rate at which the lender borrows money to fund the loan – this spread is earned until the loan is sold into the secondary market).
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'Temporary Lender'

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    ... With it, we're granted temporary access to other people's money; money we can use ...
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    ... Reinstatement - If your problem is temporary, you can agree on a specific date to ...
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    ... However, to qualify for this alternative, you need to persuade your lender that
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    ... difficulties. Ask your lender if it offers any provisions for temporary reprieve
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    ... Call your lender at the first sign you might have trouble making payments and ask
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  • Student Loans: Repayment During Financial Hardship | Investopedia

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    ... are offered within your federal student loan contracts for a temporary reprieve
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    ... This is a temporary order that provides some relief from both the unsecured
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  • 5 Ways To Avoid Foreclosure - Investopedia.com

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    ... is often a good solution if your default was caused by a temporary situation, such
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