Option coverage has proven valuable for lenders, although it is often overlooked as a tool to help effectively minimize pipeline risk.

The second chapter of the three-volume handbook comprising 51 chapters, written for anyone involved in the production, secondary marketing, operations, servicing, compliance, technology, or finance.

Interest rates are on the rise and so is market volatility. With increasing rates and market volatility, mortgage bankers are looking for valuable ways to stabilize and increase growth without increasing risk.

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.

Data outlining that if regression‐based hedge ratio is used to calculate the pricing of hedged positions, significant errors will be made.

The free float-down lock is an effective tool to help minimize risk, increase earnings stability and grow production.

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.

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.