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A good way to be safe from increasing rates with Mortgage Pipeline

Mortgage is a way to borrow money on credit by keeping something as a guarantee. The mortgage is tracked to mortgage pipeline to keep it safe from the ever increasing interest rates and it variations. The originator is the lender and keeps the mortgage into his custody till either the mortgage is sold off or added to the loan portfolio.

Mortgage is the charging of personal property by a debtor to a creditor as security for a debt especially one incurred by the purchase of the property, on the condition that it shall be returned on payment of the debt within a certain period of time. Certain mortgage loans are blocked with a mortgage originator either by lenders or borrowers. Until the time the loan falls out it is locked in with few loans lined up together for further procedures and it stays there. This group of loans set together waiting for movement is called as Mortgage Pipeline. After its fall out time it is sold in the secondary mortgage market. These mortgages in the pipeline are not put up with any interest rates. They can also be put through the originator’s loan portfolio sometimes. The originator is the lender and keeps the mortgage into his custody till either the mortgage is sold off or added to the loan portfolio.
Mortgage pipeline is used to hold back the loan for further procedures. They are used like waiting rooms or areas. The originator is responsible for the loans or mortgage pipelines till the time it is sold off. The originator can be anyone like a whole firmFree Articles, a broker or any bank. The loan either goes off sold or enters into a loan portfolio. The originator is the one who lends money to the borrower and has the custody of the submitted or mortgaged documents. In the mortgage pipeline the mortgage or the loan is safe and aloof from the rate of interest changes or any other interest rate variations. The first value or rate which was initially put on it while mortgaging is the only one which is applicable for the mortgage till the time it is in fix with the mortgage pipeline.
There are also various risk factors attached with the mortgage pipeline which need to be taken care of while accessing this option and particularly with the originator. All the security measures are must with any deal or transaction you make with anyone or any firm. Likewise here you do not go with the flow of the process and monitor every factor minutely and with utmost care and precaution. This way there is no way of falling on the face with different precautionary factors that the originator might come up with to risk the loan or mortgage.


Source: Free Articles from ArticlesFactory.com

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