Deep Dive: Pipeline Module (pwrpipe + fallout)

Narrative

The Pipeline module manages the lifecycle of mortgage loans from origination through closing and delivery. It is the foundational module -- every loan enters the system through the pipeline and flows downstream to pricing, pooling, trading, and settlement.

The module handles: loan intake and editing, master agreements and commitments, marketing programs, instrument configuration, reservations, underwriting stages, fallout processing, best efforts commitments, and cost basis definitions.

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Loan Lifecycle State Machine

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Process Pipeline Flow

The Process Pipeline operation runs underwriting stages and fallout processing on pipeline loans.

Underwriting Stages

• Stages are defined in pscat_pipeline_underwriting_stages with a sequence number
• Each stage has criteria (SQL syntax) that loans must meet to pass
• Stages execute in sequence order; failure at any stage triggers fallout

Fallout Processing

• Fallout reasons are defined in pscat_pipeline_loan_status_codes
• Each code has a function (action) associated with it
• When a loan falls out, it moves from loan to loan_history
• The fallout reason code and date are recorded

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Key Workflows

Edit (Loans)

Opens w_pipeline_edit for direct loan record maintenance. Uses configurable pipeline table name (loan by default) and modifications table (loan_modifications).

Best Efforts

Manages individual loan-level commitments to investors. A best-efforts trade links a loan to an investor instrument with a locked price. Workflows include:

• Maintain Commitment -- Edit the BE commitment details
• Process -- Run pricing and allocation for BE loans
• Settle/Unsettle -- Complete or reverse delivery
• Reconcile Prices -- Compare locked vs current pricing

Master Agreements

Hierarchical agreements: Master Agreement → Master Commitments → Marketing Programs → Instruments. Each level can have its own:

• Dollar amount and limit type (hard/soft)
• Securitization rules (SQL syntax for loan eligibility)
• Loan feature sublimits

Reservations

Capacity reservations with guarantors for future pool delivery. Supports:

• GFee grids (guarantee fee schedules)
• Loan assignment tracking
• Cancellation management
• Roll operations (extending reservation dates)
• Merge operations (combining reservations)

Instruments

Instrument maintenance by type:

Type	RM Trade Type Family	Key Fields
Loan	—	Loan product definitions
MBS	mbs	Coupon rate, security class, guarantor
Whole Loan	wl	Cash grid type, servicing fee
Futures	fc	Contract size, expiration date
Treasury	ts	Bond/note pricing
Eurodollar	euro	Contract size

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Business Rules

1. Pipeline table is configurable -- The system reads is_pipeline_table and is_pipeline_modifications_table from configuration, defaulting to loan and loan_modifications
2. Underwriting stages execute in sequence -- A loan must pass each stage before advancing
3. Fallout is irreversible in normal flow -- Once moved to loan_history, a loan does not automatically return (manual reimport is required)
4. Best efforts tolerance -- BE commitments have separate tolerance rules from mandatory trades
5. Master agreement hierarchy -- Limits cascade: MA amount caps MC totals, MC amount caps program totals
6. Instrument type determines downstream behavior -- The rm_trade_type_family field drives trading, pooling, pricing, and risk behavior for any entity using that instrument

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Data Model

Table	Purpose
loan	Active pipeline loans
loan_history	Fallen-out loans
loan_shipped	Settled/delivered loans
loan_modifications	Loan modification tracking
pscat_master_agreements	Master agreement definitions
pscat_master_commitments	Master commitment definitions
pscat_master_agr_comm_rel	Agreement-to-commitment junction
pscat_master_comm_prog_rel	Commitment-to-program junction
pscat_programs	Marketing program definitions
pscat_programs_instruments_rel	Program-to-instrument junction
pscat_instruments	Instrument master
pscat_reservations	Reservation definitions
pscat_reserv_roll_rel	Reservation roll relationships
pscat_reserv_merge_rel	Reservation merge relationships
pscat_pipeline_underwriting_stages	Underwriting stage definitions
pscat_pipeline_loan_status_codes	Fallout reason codes
pscat_pipeline_proc_profiles	Pipeline process profiles
pscat_trades_best_efforts	Best efforts commitment data
pscat_securitization_rules	Securitization rule definitions
pscat_guarantors	Guarantor definitions
rmcat_cost_basis_names	Cost basis name definitions