Mandatory Mortgage Lock

Dictionary Says

Definition of 'Mandatory Mortgage Lock'

The sale of a mortgage in the secondary mortgage market with terms that require the seller of the mortgage to make delivery to the buyer by a certain date or pair-out of the trade. The requirement to make delivery of the mortgage or pair-out of the trade makes a mandatory mortgage lock different from a best-efforts mortgage lock. A mandatory mortgage lock also carries more risk for the seller of the mortgage.
Investopedia Says

Investopedia explains 'Mandatory Mortgage Lock'

Mandatory mortgage locks or trades generally command a higher price in the secondary mortgage market than best-efforts locks. This is because there are fewer hedge costs associated with mandatory mortgage locks.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Delivery

    The action by ...
  2. Best Efforts

    An agreement in ...
  3. Mortgage

    A debt ...
  4. Best Efforts Mortgage Lock

    When the sale of ...
  5. Agency Bond

    A bond issued by ...
  6. Convertible Arbitrage

    An investing ...
  7. Liquidation

    1. When a ...
  8. Canada Savings Bond - CSB

    A financial ...
  9. Illiquid

    The state of a ...
  10. Secured Note

    A type of loan ...

Articles Of Interest

  1. Make A Risk-Based Mortgage Decision

    Find out how to choose which mortgage style is right for you.
  2. Option ARMs: American Dream Or Mortgage Nightmare?

    Option adjustable rate mortgages could make or break your home-buying experience.
  3. Find The Best Mortgage Rates

    Search and compare the best fixed and adjustable mortgage rates in your area with Bankrate.com.
  4. Understanding The Mortgage Payment Structure

    We explain the calculation and payment process as well as the amortization schedule of home loans.
  5. This Is Your Brain On Stocks

    Find out how the human mind can hurt investors' portfolios.
  6. Should You Invest Your Entire Portfolio In Stocks?

    It is true that stocks outperform bonds and cash in the long run, but that statistic doesn't tell the whole story.
  7. 5 Tips For Diversifying Your Portfolio

    A diversified portfolio will protect you in a tough market. Get some solid tips here!
  8. 5 Popular Portfolio Types

    Learning how to build these portfolios will increase your investing confidence and give you financial control.
  9. How To Invest When You're Deep In Debt

    Debt is one of the biggest obstacles that prevents people from investing - but it shouldn't be.
  10. Finding Your Investing Comfort Zone

    Choosing the right investments for you is the best way to feel comfortable with your portfolio.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center