INVESTMENT BANKS are offering mortgage banks a new type of financing that is encroaching on turf traditionally held by commercial lenders.

"Wet gestation repos," as Wall Street has dubbed the new instrument, are repurchase agreements that allow mortgage banks to borrow against mortgages pending sale into the secondary market from the moment the loans are in the hands of the mortgage bank - in other words, while the ink on the mortgage bank - in other words,

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