Term
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Definition
| A mortgage banker who originates mortgage loans that are sold to other mortgage bankers or financial institutions |
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Term
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Definition
| Money that is immediately accessible and a customer may elect to withdraw from the bank at any time. |
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Term
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Definition
| The loss of deposits to competing investments that offer higher returns |
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Term
| Federal Deposit Insurance Corporation (FDIC) |
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Definition
| A public corporation, established in 1933, that insures up to $250K for each depositor for most memeber commercial banks and S & Ls. FDIC has its own reserves and can also borrow from the US Treasury |
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Term
| Federal Home Loan Mortgage Corporation (Freddie Mac) |
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Definition
| Nonprofit, federally chartered institution (now privately owned) that fundtions as buyer and seller of the residential mortgages |
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Term
| Federal Housing Finance Agency (FHFA) |
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Definition
| Government agency that merged the powers and regulatory authority of the Federal Housing Finance Baord (FHFB) and the Office of Federal Housing Enterprise Oevrsight (OFHEO), as well as the GSE mission office at the Department of Housing and Urban Development (HUD): the conservvator of Fannie Mae and Freddie Mac. |
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Term
| al National Mortgage Association (Fannie Mae) |
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Definition
| The nation's largest, privately owned investor in residential mortgages |
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Term
| Government National Morgage Association (Ginnie Mae) |
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Definition
| Government owned corporation that guarantees payment of principal and interest to investors who buy it's mortgage backed securities on the secondary market. |
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Term
| Government-Sponsored Enterprise (GSE) |
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Definition
| A group of financial services corporations created by the United Sates Congress to enhance the flow of credit to targeted sectors of the economy and to make those segments more efficient and transparent. |
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Term
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Definition
| An instrument that creates a voluntary lien on real property to secure repayment of a debt. The parties to a mortgage are the mortgagor (borrower) and morgtagee (lender). |
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Term
| Mortgage-Backed Security (MBS) |
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Definition
| A Fannie Mae security that represents an undivided interest in a group of mortgages. Principal and interst payments from the individual mortgage loans are grouped and paid out to the MBS holders. |
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Term
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Definition
| Party who originates, sells and services mortgage loans, and usually acts as the originator and services of loans on behalf of large investors, such as insurance companies, pendions plans or Fannie Mae. |
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Term
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Definition
| Party who, for a fee, places loans with investors, but typically does not service such loans. |
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Term
| Mortgage Loan Originator (MLO) |
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Definition
| As defined by the SAFE Act, an individual who either takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan for compensation or gain. |
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Term
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Definition
| When lenders make mortgage loans directly to borrower. Also called PRIMARY MARKET |
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Term
| Secondary Mortgage Markets |
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Definition
| The private investors and government agencies that buy and sell real estate mortgages. Also called SECONDARY MARKETS |
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Term
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Definition
| Act of pooling mortgages and then selling them as mortgage-backed securities |
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Term
| Service Release Premium (SRP) |
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Definition
| The payment received by a lending instittion, such as a bank or retail mortgage lender, on the sale of the right to service a close mortgage loan. |
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