What do mortgage banks refer to the period between loan commitment and sale?

Mortgage banks refer to the period between loan commitment and sale as the mortgage pipeline. This terminology is significant in the context of the mortgage process because it encompasses the entire process from when a loan is approved and committed to when it is sold on the secondary market.

During the mortgage pipeline phase, lenders monitor the status of the loan and manage any associated risks, especially regarding interest rates and funding. This stage involves ongoing evaluation to ensure that the lender can meet investor requirements once the loan is sold, ensuring profitability and compliance.

Understanding the mortgage pipeline helps individuals in the real estate and finance fields grasp how loans are managed after approval and before they are sold, which is a critical component of maintaining liquidity and risk management for lending institutions. This concept is distinct from loan servicing, origination, and underwriting, which refer to different stages and processes in the mortgage lifecycle.