Mortgage banks typically will attempt to sell loans as quickly as possible after they are originated by either issuing mortgage

Question

3 years ago

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Mortgage banks typically will attempt to sell loans as quickly as possible after they are originated by either issuing mortgage

securities or selling the loan to an intermediary that will subsequently sell the loan in the secondary market. The period between loan commitment and loan sale is referred to as the __________.A) mortgage pipeline.
B) mortgage note.
C) mortgage fallout.
D) mortgage term.

Business

1 answer:

Lemur [1.5K] · Answer 1 · 2021-11-17T12:06:55+03:00

Answer:

A) mortgage pipeline.

B) mortgage

Explanation:

Mortgage banks typically will attempt to sell loans as quickly as possible after they are originated by either issuing mortgage securities or selling the loan to an intermediary that will subsequently sell the loan in the secondary market. The period between loan commitment and loan sale is referred to as the mortgage pipeline.

A mortgage pipeline refers to mortgage loans that are locked-in with a mortgage originator by borrowers, mortgage brokers, or other lenders. <u>A loan stays in an originator's pipeline from the time it is locked until it falls out, is sold</u> into the secondary mortgage market, or is put into the originator's loan portfolio.