Let’s talk Hedging/Risk

So, what is Hedging/Risk all about?

When a customer locks in their mortgage rate, the lender essentially guarantees the interest rate available at the time of rate lock.


If interest rates go down, the loan could become less valuable on the secondary market when the mortgage lender offers the loan for sale to investors. What to do?


Hedging guards against this risk by allowing mortgage lenders to buy securities and financial instruments which help mitigate against interest volatility, ensuring they can sell the loan at a profit while still helping the customer obtain a favorable rate.


Hedging and risk management software can help lenders track interest rates to find the best rate-lock moment and then identify the hedging strategy for a profitable sale on the secondary market.

Hedging/Risk Benefits

For Mortgage Professionals

Maximize Profit

With the right hedging strategy, agencies can manage their risk and even make an extra profit when they sell a loan on the secondary market.

Satisfied Customers

By helping customers time their rate locks, they can help the customer save thousands of dollars in interest payments over the life of the loan, contributing massively to customer satisfaction.

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Hedging/Risk Companies

Black Knight Inc.
Flatirons Hedging Analytics
MCT Trading
MIAC MarketShield


Hedging/Risk Resources

  • Whitepapers
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Choosing the Right Technology Vendor

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Hedging/Risk Insights

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