Mortgage-pipeline risk

The risk associated with taking applications from prospective mortgage borrowers who may opt to decline to accept a quoted mortgage rate within a certain grace period. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • mortgage-pipeline risk — The risk associated with taking applications from prospective mortgage borrowers who may opt to decline to accept a quoted mortgage rate within a certain grace period. Bloomberg Financial Dictionary …   Financial and business terms

  • Mortgage Pipeline — Mortgage loans that have been locked in with a mortgage originator by borrowers, mortgage brokers or other lenders. A loan will stay in an originator s pipeline from the time it is locked until it falls out, is sold into the secondary mortgage… …   Investment dictionary

  • Pipeline — 1) An investment company whose purpose is to collect investment funds from a pool of individual investors and invest them in financial securities. 2) The underwriting procedure which must be completed by the Securities Exchange Commission (SEC)… …   Investment dictionary

  • Mortgage Fallout — A term used to describe the percentage of loans that do not close in a mortgage originator s pipeline. Mortgage originators adjust the fallout assumptions used in their hedge ratios as interest rates change relative to the loans they have in… …   Investment dictionary

  • Fallout risk — A type of mortgage pipeline risk that is generally created when the terms of the loan to be originated are set at the same time as the sale terms are set. The risk is that either of the two parties, borrower or investor, fails to close and the… …   Financial and business terms

  • fallout risk — A type of mortgage pipeline risk that is generally created when the terms of the loan to be originated are set at the same time the sale terms are established. The risk is that either of the two parties, borrower or investor, fails to close and… …   Financial and business terms

  • reverse price risk — A type of mortgage pipeline risk that occurs when a lender commits to sell loans to an investor at rates prevailing at the time of mortgage application but sets the note rates when the borrowers closes. The lender is thus exposed to the risk of… …   Financial and business terms

  • price risk — The risk that the market value of an asset or liability will change adversely. One of nine risks defined by the OCC. The OCC defines price risk as the risk to earnings or capital arising from adverse changes in the value of portfolios of… …   Financial and business terms

  • Price risk — The risk that the value of a security (or a portfolio) will decline in the future. Or, a type of mortgage pipeline risk created in the production segment when loan terms are set for the borrower in advance of terms being set for secondary market… …   Financial and business terms

  • Reverse price risk — A type of mortgage pipeline risk that occurs when a lender commits to sell loans to an investor at rates prevailing at application but sets the note rates when the borrowers close. The lender is thus exposed to the risk of falling rates. The New… …   Financial and business terms

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