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.
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Should attractive hedges become available in the market at an acceptable cost, we will enter into additional hedges in mitigation against these financial risks.
The Partnership has additional hedges covering a portion of its production in 2020.
This was a result of the hedges we had to purchase during the first few weeks of the year, additional hedges we used to insure against adverse weather in ERCOT this summer, and increases in capacity costs in New England.
Volunteers are needed at Blakers Park, off Preston Drove, to help lay additional hedges around the perimeter of the popular green space.
In other financials, Swiss insurer Zurich Financial Services lost 3.6 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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