|
|
Reverse price risk |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Reverse price riskA 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 closes. The lender is thus exposed to the risk of falling rates.Reverse price risk Similar MatchesReverse a swapReverse a swapReswap of bonds to gain the advantage of a yield spread or tax loss and restore a bond portfolio to its position before the original swap. Reverse annuity mortgages (RAM)Reverse annuity mortgages (RAM)Bank loan for an amount equal to a percentage of the appraisal value of the home. The loan is then paid to the homeowner in the form of an annuity. Reverse conversionReverse conversionA technique in which brokerage firms earn interest on the stocks they hold for their customers by selling the short and investing the proceeds in money market accounts. The short positions are hedged to protect against adverse market conditions. Reverse leverageReverse leverageThe investment of borrowed money where the return fails to match the interest payable on the loan. Reverse mortgageReverse mortgageA mortgage that permits elderly people who own their home outright to receive an income with the home as collateral. The loan is repaid plus interest either at the end of the term or on the death of the borrower when the property would be sold. Further SuggestionsReverse mortgagereverse annuity mortgage Lifetime reverse mortgage Reverse leveraged buyout Fixed term reverse mortgage Reverse leverage |
|
|
|