pipeline risk
pipeline risk
A slang expression for the risk a lender takes when it makes a loan commitment at a certain interest rate,but knowing that before the loan closes interest rates might increase.
Pipeline Risk
The lender's risk that, between the time a lock commitment is given to the borrower and the time the loan is closed,interest rates will rise and the lender will take a loss on selling the loan.See Locking the Loan/Cost of Locking to Lenders.