# Borrowing Base

> Borrowing Base funds and transfers loans between production and permanent capital

| Field | Value |
|---|---|
| Stable ID | `node:kiduna:real-estate-mortgage:whole-loan-warehouse:borrowing-base` |
| Family | Whole Loans, Warehouse & Correspondent |
| Domain | Economics |
| Era | Agentic Age |
| Kind | concept |
| Archetype | The Relation |
| Claim layers | empirical, cultural_historical, synthesis, interpretive, symbolic_divinatory |

## What it is

Borrowing Base is a concept in the Whole Loans, Warehouse & Correspondent family, defined here by the function it performs in the property system rather than by label alone.

## What it actually does

Borrowing Base funds and transfers loans between production and permanent capital.

## Why it exists

It exists because place is unique and immovable while law, capital, information, and human lives must still coordinate around it across time.

## System mechanics

- **Who uses it:** owner, occupant, buyer, seller, lender, investor, steward, regulator
- **Incentives:** access, certainty, control, value, continuity
- **Inputs:** place, people, records, rules, resources, time
- **Outputs:** rights, constraints, uses, relationships, consequences
- **Dependencies:** Land, Authority, Information, Capital, Time

## Archetypal reading

- **Essence:** Borrowing Base funds and transfers loans between production and permanent capital
- **Gift:** Clarity about borrowing base makes a hidden allocation of place, time, authority, value, or risk available for deliberate choice.
- **Wound / Shadow:** When borrowing base is treated as neutral or inevitable, its costs can be shifted to people who hold less information, authority, liquidity, or mobility.
- **Failure mode:** The failure mode appears when borrowing base is stale, opaque, mispriced, misrecorded, overextended, or applied outside the conditions that made it useful.

## Lenses

- **Personal:** Notice where borrowing base appears as a structure in your own commitments: what is held, promised, priced, protected, excluded, or deferred?
- **Business:** Borrowing Base reveals a handoff among information, authority, incentives, operating work, and capital. Make the owner of each handoff explicit.
- **Financial:** Borrowing Base changes the timing, priority, comparability, liquidity, or distribution of cash flow and risk.
- **Property:** Borrowing Base changes how a physical place can be used, valued, financed, transferred, occupied, maintained, or reclaimed.
- **Community:** Borrowing Base can create benefits inside one parcel while exporting costs or opportunity to neighbors, institutions, or future residents.

## Divination

The Relation enters the reading through Borrowing Base. The issue is not only what is visible; it is which map of ownership, time, risk, authority, or belonging currently governs the situation.

**Question:** What changes when Borrowing Base becomes the unit of analysis?

**Guidance:** Shift scale, clock, stakeholder, boundary, and claim layer before choosing a move.

## Game function

Creates a graph move that changes the active map. Initiative 3.

## Relationships

- **Weighted Average Maturity documents Borrowing Base.** Weighted Average Maturity documents Borrowing Base through a change in rights, information, cash flow, priority, timing, or physical use.
- **Warehouse Line documents Borrowing Base.** Warehouse Line documents Borrowing Base through a change in rights, information, cash flow, priority, timing, or physical use.
- **Borrowing Base transfers into Bailee Letter.** Borrowing Base transfers into Bailee Letter through a change in rights, information, cash flow, priority, timing, or physical use.
- **Borrowing Base transfers into Prepayment Speed.** Borrowing Base transfers into Prepayment Speed through a change in rights, information, cash flow, priority, timing, or physical use.

## Oppositions

- Use Value versus Exchange Value
- Speed versus Diligence

## Historical lineage and regulatory context

Read Borrowing Base through the lineage of Whole Loans, Warehouse & Correspondent: earlier customary or local arrangements became recorded, standardized, financed, regulated, digitized, or contested over time.

Rules vary by jurisdiction and transaction. Use the cited primary sources as starting points and verify current local law, program guides, contracts, and professional standards before operational use.

## Visual direction

Text-free rounded-square enamel artifact for Borrowing Base: one dominant symbolic mechanism with a restrained secondary counterforce; vitreous midnight enamel, blackened steel, warm brass, copper accents, mortgage-paper cream, deep green, slate, and sky blue.

## Engine output / Sentinel handoff

The generative interpretation above is preserved as Engine Output. Sentinel factors: jurisdiction-specific rules, factual uncertainty. These factors request contextual review; they do not delete or silently rewrite the candidate.

## Research / provenance

- [Fannie Mae Selling Guide](https://singlefamily.fanniemae.com/media/document/pdf/selling-guide-february-4-2026) — Fannie Mae; loan eligibility, underwriting, appraisal, delivery.
- [Freddie Mac Single-Family Seller/Servicer Guide](https://guide.freddiemac.com/) — Freddie Mac; loan eligibility, Loan Product Advisor, servicing.
- [Risk Management Manual — Commercial Real Estate Lending](https://www.fdic.gov/risk-management-manual-examination-policies/commercial-real-estate-lending) — Federal Deposit Insurance Corporation; CRE underwriting and risk management.
