Mortgage Fallout

See: Mortgage.

Mortgages can take time to close. You've got paperwork to fill out, proof of income to hand in, down payments to win in poker games...not every mortgage that starts off ends up as a finished deal.

Mortgage fallout measures how many mortgages don’t finish the process. The figure represents the percent of original deals that don’t reach completion.

A mortgage is considered part of a lender's pipeline once an interest rate gets locked. At that point, if the deal falls through, it gets tallied as a "fallout." So, say a mortgage company puts 20 deals in its pipeline for a month and 15 of those deals close. Five of the potential mortgage agreements falls through. The mortgage fallout for that lender would be five out of 20, or 25%.