Agile CTO, Phil Rasori, Explores the Benefits of Hedging a Mortgage Pipeline in his latest Forbes Finance Council Article

2022 has been a year marked by volatility, inflation, and a looming recession, and in his latest Forbes Finance Council article, Agile Chief Technology Officer, Phil Rasori, explores how hedging a mortgage pipeline can help mitigate increased risk. The capital markets are no stranger to risk, and in these volatile environments it is critical to turn to the expertise of mortgage hedge advisories, whose job it is to navigate all the obstacles that can threaten investors looking to maintain their margins.

“Volatility can wreak havoc on mortgage rates, but hedging can spread risk and protect against market fluctuations that may dramatically change interest rates,” writes Rasori. His article highlights the following factors investors should consider when hedging a mortgage pipeline:

  • Rate lock timing and length
  • Moving from “best efforts” to “mandatory” loan sale delivery
  • Removing interest rate volatility risk
  • Ability to manipulate cash flows
  • Removing the manual bandwidth

Click here to read the full article.