REVERSE PRICE RISK


Meaning of REVERSE PRICE RISK in English

A type of mortgage-pipeline risk that occurs when a lender commits to sell loans to an investor at rates prevailing at the time of mortgage application but sets the note rates when the borrowers close. The lender is thus exposed to the risk of falling rates.

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.