Price Alignment

Investor bid ranges are dynamic and differ by loan size, credit tier, and product term. Loan pricing varies by credit tier and LTV, with some lower-score loans trading at a discount to par and higher-score loans commanding a premium. Use current trading data and investor offerings to calibrate your corridor targets—not historical benchmarks. Small deviations at scale generate material P&L variance; alignment upfront preserves spread and avoids buyback risk.

Corridor targets define acceptable pricing deviation before penalties or repricing apply. If the agreed corridor is ±25 bps and the loan pricing drifts outside it, the buyer may demand adjustment or walk away. Monitor corridor windows per investor—some reset daily, others weekly—and align with your hedge timing. A mismatch here is a common cause of settlement delays and repricing friction.