Mortgage Fallout

  

Categories: Mortgage

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%.

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Finance: What is a second mortgage?4 Views

00:00

Finance allah shmoop What is a second mortgage Okay you

00:07

know what a first mortgages it's otherwise cleverly named what

00:12

is called it is called oh yeah Mortgage it's Just

00:14

a loan on a house You paid four hundred grand

00:17

for this baby Hundred grand down two hundred fifty grand

00:19

in a first mortgage And they're still fifty grand You

00:23

owe well where's that fifty large coming from the bank

00:27

wouldn't loan you any more on a first mortgage that

00:30

was costing you six percent a year Tio you know

00:32

to rent that money So you had to get a

00:34

second mortgage which should things go awry and you become

00:40

a statistic Well that's it's fully behind the first mortgage

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in the priority stack of payback So in a bankruptcy

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situation the first mortgage first what's called a first mortgage

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get it fully paid along with any fees associated with

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it and back interest accrued and any other things that

00:59

are associated with that first mortgage it stands in line

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first in priority Then any cash leftover gets attributed to

01:07

that second mortgage So not surprisingly second mortgage money costs

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a lot more to rent then first mortgage money because

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the risk of non payment in a bad situation is

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meaningful E higher especially when the borrowed does this for 00:01:25.136 --> [endTime] a living

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