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.
References in periodicals archive ?
Volunteers are needed at Blakers Park, off Preston Drove, to help lay additional hedges around the perimeter of the popular green space.
6 percent after its third-quarter profit missed expectations due to spending on additional hedges.
Additional hedges should be considered in light of the opportunities that may surface relative to new short-term risks or that may exist in the future.
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