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Definition
| the result created when lenders are required to pay high rates of interest for deposits while receiving long-term income from low-interest rate mortgage loans. |
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| the market in which lenders originate loans and make funds available to borrowers. |
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Term
| Secondary mortgage market |
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Definition
| a market in which mortgage loans can be sold to investors. |
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Term
| sources of money in primary mortgage market |
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Definition
| 2 Types: those regulated by federal gov't and those that aren't. Type one is banks, s&L associations, and savings banks. Type Two is investment bankers, life insurance companies, and finance companies. |
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Definition
| brings together mortgage borrowers and lenders. |
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Definition
| Federal National Mortgage Association. Buys mortgage loans from lenders so the lenders can grant more loans to consumers. Buys FHA, VA, and conventional whole loans from lenders. |
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Definition
| selling a loan on the secondary market to someone else in return for a big cash check. |
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Definition
| Government National Mortgage Association. Best known for its mortgage backed securities program that gives additional sources of credit to FHA, VA, and certain Rural Housing Service mortgages. Does this by guaranteeing timely repayment of privately issued securities backed by pools of these mortgages. |
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Definition
| Federal Home Loan Mortgage Corporation. Goal is to increase the availability of financing for residential mortgages. Deals primarily in conventional mortgages. |
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Definition
| when the government guarantees a certain % of the loan a veteran takes out. |
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Term
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Definition
| federal housing administration insurance insuring lenders against losses due to nonrepayment when they made loans on both new and existing homes. |
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