Mortgage Hedging Policy - $100.00

Summary

The purpose of this Mortgage Hedging Policy Template is to address hedging pipeline and warehouse risks of a bank, credit union, or other type of financial institution that are consistent with the overall risk management process of an organization.

In general, the objective of hedging is to mitigate market risk and protect the value of such mortgages and commitments from the initial commitment date until the loan is funded and sold.  The primary objective of hedging mortgage banking activities is to offset changes in the fair value of the mortgage pipeline and warehouse positions in the most cost effective and efficient manner.  Mortgage hedging strategies help level the peaks and troughs of normal market movements to produce a consistent and predictable revenue flow.

Table of Contents

Purpose and Contents - Topic 1
Policy Statement - Topic 2
Risk Metrics - Topic 3
Best Execution - Topic 4
Hedge and Loan Pool Optimization - Topic 5
Risk Identification and Segmentation - Topic 6
Hedge Coverage, Activity and Techniques - Topic 7
Hedge Position Management - Topic 8
Risk Exposure Reports - Topic 9
Audit Policy - Topic 10
Staff Training - Topic 11
Retention of Documentation - Topic 12

NOTE: The complete contents of this template are included in the Mortgage Loan Policy Template.

This Mortgage Hedging Policy Template (approximately 14 pages) is available to purchase from BankPolicies.com in Microsoft® Word format for $100.00.

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