The major participants in the secondary mortgage market are Fannie Mae (formerly the Federal National Mortgage Association), Freddie Mac (formerly the Federal home Loan Mortgage Corporations), and Ginnie Mae (formerly the Government National Mortgage Association).
When mortgages are purchased from primary lenders, also known as loan originators, the money generated acts to replenish the supply necessary for continued lending activities. When mortgages are sold to investors, funds are recirculated naturally from money-rich areas to money-poor areas.
Nice work! You just studied 27 terms! Now up your study game with Learn mode. The secondary mortgage market is designed to deal in real estate mortgages, buying them from loan originators and selling them to investors or pooling them to enlarge the markets for these types of securities.
When mortgages are sold to investors, funds are recirculated naturally from money-rich areas to money-poor areas.
Mortgage lenders use funds from their depositors or borrow money from larger banks at lower interest rates to extend loans.
mortgage. a loan for the purpose of buying property, usually paid in payments of principal (amount borrowed) and interest over a period of from 15 to 30 years. equity. the difference between what a house (or property) is worth, and what is owed on the mortgage.
What are the two parties to a mortgage? The mortgagor owns the property and the mortgagee owns the mortgage. A mortgage is regarded as an investment or chattel (personal property) by the mortgagee.
Mortgage is a loan taken to purchase property and guaranteed by the same property. An example of a mortgage is the loan you took out when you bought your house. The pledging of property to a creditor as security for the payment of a debt.
The major participants in the secondary mortgage market are Fannie Mae (formerly the Federal National Mortgage Association), Freddie Mac (formerly the Federal home Loan Mortgage Corporations), and Ginnie Mae (formerly the Government National Mortgage Association).
The secondary mortgage market is designed to deal in real estate mortgages, buying them from loan originators and selling them to investors or pooling them to enlarge the markets for these types of securities. #N#When mortgages are purchased from primary lenders, also known as loan originators, the money generated acts to replenish the supply necessary for continued lending activities.#N#When mortgages are sold to investors, funds are recirculated naturally from money-rich areas to money-poor areas.#N#The major participants in the secondary mortgage market are Fannie Mae (formerly the Federal National Mortgage Association), Freddie Mac (formerly the Federal home Loan Mortgage Corporations), and Ginnie Mae (formerly the Government National Mortgage Association).#N#The financial market for real estate loans is based on the ability of loan originators to dispose of their new loans as quickly as possible in the secondary market, as they need to replenish funds and strive to manage the interest rate risk that arises from long-term, fixed-rate mortgages.#N#This results in loan originators having to closely follow the loan guidelines established by the secondary market investors.#N#The trend toward selling real estate loans has led to the development of a major new group of investors.#N#Based on the concept of collateralization--the pooling together of homogenous types of mortgages to use as collateral for issuing marketable securities--private companies have emerged to challenge the dominant positions of Fannie Mae and Freddie Mac.#N#Operating as real estate mortgage investment conduits (REMICs), these life insurance companies, pension funds, securities dealers, and other financial institutions are creating new loans for their own portfolios, as well as buying and selling loans from other originators.
By selling their mortgages, these originators can secure more funds for making additional loans, thereby collecting more origination fees.
In 1954 Fannie Mae was rechartered as a national secondary mortgage market clearinghouse to be financed by PRIVATE CAPITAL.
Fannie Mae was established by congressional charter in 1938 as the Federal National Mortgage Association (FNMA) to expand the flow of available mortgage money throughout the country by creating a secondary market for the purchase of FHA-insured mortgages.
When mortgages are purchased from primary lenders, also known as loan originators, the money generated acts to replenish the supply necessary for continued lending activities. When mortgages are sold to investors, funds are recirculated naturally from money-rich areas to money-poor areas.
Fannie Mae did not have to purchase every mortgage submitted to it, only those mortgages that met its standards for marketability.
With an adjustable rate mortgage, if a payment is not sufficient to cover the interest amount due, the unpaid interest amount may be added to the loan balance. What is the term used to describe this situation?
Discount rate is the least effective of the Federal Reserve's three tools***
Gerri has a 15-year loan with monthly payments that remain the same amount for the entire loan period. Which type of mortgage repayment plan does Gerri have?