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Additional Hedge |
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Additional hedge A protection against fallout risk in the mortgage pipeline. Additional Hedge A way for a mortgage lender to protect itself from the risk that a potential borrower will reject a loan after the terms are set but before the deal is finalized. Such a rejection could result in a loss for the lender, particularly if it has already made arrangements to repackage and sell the mortgage to a third party. An additional hedge protects against this. See also: Fallout Risk. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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