Unleash the power of precision with our cutting-edge computer research tool, designed to optimize and apply the most effective grid assumptions for your hedging strategy. FHA/VA and conventional product lines exhibit predictable fallout behavior—leverage this predictability to your advantage.
This innovative tool calculates and applies grids tailored to key factors like product type, channel, purpose, credit scores, origination milestones, lock age, and interest rate shifts. By seamlessly integrating these grids into the hedge model, you can minimize unfavorable variances between actual and modeled outcomes. The result? A “cost of grid” that stays comfortably within acceptable ranges—and often delivers favorable variances compared to actual performance.
The secondary market for Ginnie Mae MBS, Fannie/Freddie UMBS, and FHLB whole cash commitments offers hedge-able, liquid opportunities with price behavior that aligns consistently across various hedge and takeout options. With such reliable markets, hedging rate locks and capturing the mandatory price premium becomes not just a smart move—but an effortless decision.
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