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 ?
The credit applies to traditional first lien mortgages originated during this period by SunTrust Mortgage, including purchase, refinance and HARP loans, but excluding Simple Home Refi loans and home equity lines of credit, correspondent and broker loans.
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.
However, broker loans require a down payment of at least 10 percent, along with a minimum 720 FICO[R] score.
In particular, the Fed has the power to order increases in the margin requirement on broker loans, dampening stock market speculation.
Council bosses have solved that problem by agreeing to broker loans based on the future rather than current value of the property.
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.
Their model of providing loan originators with a strong mortgage bank as well as the flexibility to broker loans has helped grow the company to over 160 branches.
Conkling also can broker loans to a list of approved lenders.
Amstar Mortgage Corporation closed approximately 1,700 broker loans totaling almost $339,000,000, during the quarter ending December 31, 2006.
Regarding the electronic marketplace, Principal's Kuhn said, "the idea of putting broker loans up for bid like stocks is not that far away.
With licenses in more than 30 States, it is equipped to process and broker loans online at www.
We plan to offer product, service and rate quotes from any lender who wants to publish its prices and products on the Exchange, whether or not that lender uses the Exchange to procure broker loans.