Mortgage Pipeline Law and Legal Definition
Mortgage loans that have been approved by a mortgage company but yet to be financed. It is the period from the taking of applications from prospective mortgage borrowers to the marketing of the loans. The mortgage lender conducts all due diligence and generally makes all preparation for a new mortgage, including assessment of risk. The lender can approve or deny offering a mortgage to the borrowers based on this information. Mortgage loans are taken out of the pipeline either if the borrower backs out, or if the loan funds. When the mortgage is in the pipeline, it is protected from changes to the interest rates. Usually the mortgage pipeline is managed by a secondary marketing department who collects all the necessary information and passes it on to the mortgage lender.