The Loan Applications Being Processed and the Commitments Made by a Mortgage

question 22

Essay

The loan applications being processed and the commitments made by a mortgage originator together are called its pipeline. Pipeline risk refers to the risks associated with originating mortgages. This risk has two components. Name and describe the two components.

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Definitions:

Group 1

Typically refers to a specific subgroup or batch of subjects in an experimental design or study.

Group 2

Typically refers to the second set or category of data points or participants that are part of a study, experiment, or analysis.

Effect Size

A quantitative measure of the strength of a phenomenon or the magnitude of a difference between groups in a study.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values from the mean.