Financial and business terms. 2012.
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
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
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
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 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
Product risk — A type of mortgage pipeline risk that occurs when a lender has an unusual loan in production or inventory but does not have a sale commitment at a prearranged price. The New York Times Financial Glossary … Financial and business terms
