broker's loan

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Broker's Loan

A loan to a broker or brokerage by a bank. Brokers take out broker's loans usually to fund margin accounts for their clients, but also to fund underwriting purchases. Occasionally, brokerages borrow these loans to buy securities for themselves as well. Broker's loans are payable on 24 hours notice, and carry interest rates that are about one point higher than short-term rates. See also: Broker call loan.

broker's loan

Funds borrowed by a broker, mainly from banks, for various purposes including a call loan for purchases of securities on margin, an underwriter's purchase of a new security issue for resale, or a specialist's inventory of securities. Also called general loan and collateral agreement.
References in periodicals archive ?
Target Asset Management will manage the fund and Blackmoon will act as a technological provider for access to balance sheet lender portfolios, serve as risk assessor and broker loans.
What has changed for Wells, Frommeyer explains, is that by acquiring the broker loans via correspondents, "they can have somebody to buy it back" if that becomes necessary, he adds.
Hughton will attempt to broker loans from other topflight clubs, but he knows that option has been complicated by new Premier League rules governing squad size and composition.
In particular, the Fed has the power to order increases in the margin requirement on broker loans, dampening stock market speculation.
The founding of a mortgage bank, the Credit Foncier, in 1852, completed the transfer of private credit to banks, although notaries continued to broker loans in the countryside.
Council bosses have solved that problem by agreeing to broker loans based on the future rather than current value of the property.
Other factors include the increase of the discount rate from 5 to 6 percent in August of 1929 by the Federal Reserve Bank of New York; a scarcity of new broker loans due to pressure from the Federal Reserve Board to restrict loans to finance speculation; fears that a forgery scandal such as had occurred in England in the Hatry investment firm could happen in the U.
While net branching is not per se illegal in all states, where the model often runs afoul of state laws is when a licensed entity does business with multiple unlicensed entities that broker loans for the licensee.
If so, how would you manage the internal conflict of prioritization when a loan officer is screaming for an approval, but there are a dozen broker loans ahead of him or her in line?
However, broker loans require a down payment of at least 10 percent, along with a minimum 720 FICO[R] score.
With licenses in more than 30 States, it is equipped to process and broker loans online at www.
While the mortgage brokerage brokered loans, as did the defendant in the Illinois case, it also engaged in a small amount of direct lending (approximately 1 percent to 6 percent of its loans involved direct loans), and was licensed to lend mortgage funds in 13 states (although it was licensed to broker loans in 45 states).