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Mandatory Mortgage Lock

Home Ownership by Country


What is '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.

Explaining '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.


Further Reading


The effectiveness of mandatory mortgage counseling: can one dissuade borrowers from choosing risky mortgages?The effectiveness of mandatory mortgage counseling: can one dissuade borrowers from choosing risky mortgages?
www.nber.org [PDF]
… The legislation set the FICO score threshold for mandatory counseling at 620, with an additional provision that … We obtain our mortgage data from the First American CoreLogic LoanPerformance database on securitized nonprime mortgages (henceforth, the LP data, which …

Consumer confusion in the mortgage market: Evidence of less than a perfectly transparent and competitive marketConsumer confusion in the mortgage market: Evidence of less than a perfectly transparent and competitive market
pubs.aeaweb.org [PDF]
… The legislation set the FICO score threshold for mandatory counseling at 620, with an additional provision that … We obtain our mortgage data from the First American CoreLogic LoanPerformance database on securitized nonprime mortgages (henceforth, the LP data, which …

Peas in a pod? Comparing the US and Danish mortgage finance systemsPeas in a pod? Comparing the US and Danish mortgage finance systems
papers.ssrn.com [PDF]
… The legislation set the FICO score threshold for mandatory counseling at 620, with an additional provision that … We obtain our mortgage data from the First American CoreLogic LoanPerformance database on securitized nonprime mortgages (henceforth, the LP data, which …

Do financial counseling mandates improve mortgage choice and performance? Evidence from a legislative experimentDo financial counseling mandates improve mortgage choice and performance? Evidence from a legislative experiment
www.econstor.eu [PDF]
… The legislation set the FICO score threshold for mandatory counseling at 620, with an additional provision that … We obtain our mortgage data from the First American CoreLogic LoanPerformance database on securitized nonprime mortgages (henceforth, the LP data, which …

Financial Education versus Costly Counseling: How to Dissuade Borrowers from Choosing Risky Mortgages?Financial Education versus Costly Counseling: How to Dissuade Borrowers from Choosing Risky Mortgages?
www.aeaweb.org [PDF]
… The legislation set the FICO score threshold for mandatory counseling at 620, with an additional provision that … We obtain our mortgage data from the First American CoreLogic LoanPerformance database on securitized nonprime mortgages (henceforth, the LP data, which …

The economics of small business finance: The roles of private equity and debt markets in the financial growth cycleThe economics of small business finance: The roles of private equity and debt markets in the financial growth cycle
www.sciencedirect.com [PDF]
… The legislation set the FICO score threshold for mandatory counseling at 620, with an additional provision that … We obtain our mortgage data from the First American CoreLogic LoanPerformance database on securitized nonprime mortgages (henceforth, the LP data, which …

Out of sight, out of mind: Financial illiteracy, inattention, and sluggish mortgage refinancingOut of sight, out of mind: Financial illiteracy, inattention, and sluggish mortgage refinancing
papers.ssrn.com [PDF]
… The legislation set the FICO score threshold for mandatory counseling at 620, with an additional provision that … We obtain our mortgage data from the First American CoreLogic LoanPerformance database on securitized nonprime mortgages (henceforth, the LP data, which …

Three initiatives enhancing the mortgage market and promoting financial stabilityThree initiatives enhancing the mortgage market and promoting financial stability
www.degruyter.com [PDF]
… The legislation set the FICO score threshold for mandatory counseling at 620, with an additional provision that … We obtain our mortgage data from the First American CoreLogic LoanPerformance database on securitized nonprime mortgages (henceforth, the LP data, which …

Peas in a Pod? Comparing the US and Danish Mortgage Finance SystemsPeas in a Pod? Comparing the US and Danish Mortgage Finance Systems
www.jstor.org [PDF]
… The legislation set the FICO score threshold for mandatory counseling at 620, with an additional provision that … We obtain our mortgage data from the First American CoreLogic LoanPerformance database on securitized nonprime mortgages (henceforth, the LP data, which …

Economic and Regulatory Developments Affecting Mortgage Related SecuritiesEconomic and Regulatory Developments Affecting Mortgage Related Securities
heinonline.org [PDF]
… The legislation set the FICO score threshold for mandatory counseling at 620, with an additional provision that … We obtain our mortgage data from the First American CoreLogic LoanPerformance database on securitized nonprime mortgages (henceforth, the LP data, which …


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