What Is a Mortgage Pipeline?
Pipeline risk is the risk associated with issuing home mortgage loans. Including price risk and transaction interruption risk. The former means that if the mortgage interest rate in the market rises, it will negatively affect the value of loans in progress. The latter means that the applicant or anyone who has received a letter of commitment ultimately decides not to complete the transaction, that is, to not borrow money from the originator of the mortgage to purchase a home. [1]