Articles
Tracking Mortgage Pipeline Risk Management Performance
The primary goal of most secondary marketing departments is to make sure the company meets its profit goals for loans sold into the secondary market.
MCM Analytics – Regression vs. MCM OAS Hedge Ratios
Data outlining that if regression‐based hedge ratio is used to calculate the pricing of hedged positions, significant errors will be made.
Float-down Locks as a Hedging Tool in Rising Interest Rate Environment
The free float-down lock is an effective tool to help minimize risk, increase earnings stability and grow production.
MBA Newslink Interview with Dean Brown
Those who do not use options when a pipeline source or renegotiation policy dictates that their use is necessary. Mortgage Capital Management recommends the use of options as a hedge to protect against fallout and the volatility associated with a pipeline’s potential renegotiations.
Loan Level Pricing
Loans are valued by the market on a loan-level basis. This market price is divided into two basic components: the note and the servicing value.