Robert McLister·General·January 7, 2013Discretionary Rate A preferable mortgage rate that is not disclosed to a borrower up front. Banks and credit unions often use discretionary pricing models to maximize profit. In practice, such lenders advertise higher rates and then lower them based on a customer’s: application characteristics negotiating skill, and business with that institution. Like news like this?Join our CMT Updates list and get the latest news as it happens. Unsubscribe anytime. SUBSCRIBE! Thank you for subscribing. One more step: Please confirm your subscription via the email sent to you.