Price risk

Definition: [crh] The risk that the value of a security (or a portfolio) will decline in the future. Or, a type of mortgage pipeline risk created in the production segment when loan terms are set for the borrower<Definition: /A> in advance of setting terms for secondary market sale. If the general level of rates rises during the production cDefinition: ycle, the lender may have to sell the originated loans at a discount.

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