Definition of Mortgage pipeline:
A mortgage pipeline contains loans that have been locked in with an originator or a mortgage by its borrowers, brokers, or other mortgage lenders. Loans typically stay in the pipeline of their originator from the time it is locked until the time that it falls out. These mortgages in the originators pipeline are also usually hedged against any movements in interest rates.
A mortgage originator is generally the first entity that's involved in the secondary mortgage market. They can range from retail banks, brokers, and mortgage bankers. The mortgage originator's pipeline is managed by its secondary marketing department. As noted above, the pipeline consists of mortgage applications that have a locked-in interest rate but aren't yet approved.
A mortgage pipeline refers to mortgage loans that are locked-in with a mortgage originator by borrowers, mortgage brokers, or other lenders. A loan stays in an originator's pipeline from the time it is locked until it falls out, is sold into the secondary mortgage market, or is put into the originator's loan portfolio. Mortgages in the pipeline are hedged against interest-rate movements.
How to use Mortgage pipeline in a sentence?
- A mortgage pipeline is the backlog of mortgage applications that are still waiting to be approved, but which have interest rate locks.
- Since rates are locked, fluctuations in prevailing rates during the period between application and loan approval exposes banks to interest rate risk.
- Scrutinizing mortgage pipelines can help analysts understand future homeowner borrowing.
Meaning of Mortgage pipeline & Mortgage pipeline Definition