Mortgage Hedging Policy

$100.00

This Mortgage Hedging Policy Template addresses hedging pipeline and warehouse risks of a bank, credit union, fintech company, 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.  See more information about this product below.  In addition, we recommend adding a Product Update Protection Plan to your shopping cart to ensure you automatically receive an updated version of this policy template every time it is revised by us via e-mail within one year from the date of purchase.

Mortgage Hedging Policy

This Mortgage Hedging Policy Template addresses hedging pipeline and warehouse risks of a bank, credit union, fintech company, 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

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

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

Want to ensure your purchase from BankPolicies.com remains current? Add a Product Update Protection Plan to your shopping cart to ensure that you will automatically receive an updated version every time it is revised via e-mail within one year from the last date of purchase. This timely and cost-effective solution ensures that you stay on top of federal regulatory changes and industry recommended best practices.

When updates are made you will receive detailed information regarding why the product was updated and what has changed within the product in our Product Update Notification e-mail correspondence. This enables you to make an informed decision on whether to make any changes to the policy or procedure you implemented for your financial institution from the revised template.

BankPolicies.com provides your financial institution with the best bank policy template products available in the industry. You will always be up to date with the latest changes to bank policies and never have to worry about being out of compliance with the various laws, rules and regulations issued by the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), Federal Reserve, Office of the Comptroller of the Currency (OCC), or other federal regulatory bodies that may apply to your organization.

Our dedicated staff of career banking industry professionals are ready to keep your financial institution up to date with the latest bank policy standards and industry best practices. Purchase your bank policies from us today and rest easy knowing you have the right team helping you and your organization stay compliant. We look forward to earning your business for all of your bank policy needs.

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