Understanding Interest Rate Pricing – Where Does The Money Come From? (Part One)

Written By: Tammy Butler, FairLendingDiversity.com and Editor of MortgageCurrentcy.com.


Compliance professionals, new originators and even some seasoned originators aren’t quite sure what all of the secondary marketing pricing gibberish means! Part one of this series takes you through the first part of the mortgage money market. Each month our series will take you a little bit deeper into the complex world of mortgage pricing. You will not want to miss this series!

Part One - Where Does The Money Come From?

As a compliance professional, you have to be the Jack or Jill of all trades in order to understand how policy and strategy can be monitored and developed. If you come from a legal background, you may have never been exposed to the often-complex world of pricing. In fact, even just the basic mortgage jargon can take a year or so to adjust to! Yet, pricing can be your biggest Achilles heel if you do not understand how it works!

I’m approached frequently by compliance folks who ask me to help them understand pricing terminology and concepts. It truly is another language, and one that is not easily grasped. Yet, the consequences for not understanding the language and concepts can be dire to your exam results.

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