Chapter 4 Vocab Flashcards
(21 cards)
Collateralized Mortgage Obligation
Allows the creation of multi-class mortgage securities
Default
The failure to fulfill a legal obligation.
-not repaying a legal debt
FNMA
Fannie Mae
Farm Credit Agency
FCA
-Was created by the Agricultural Act to provide capital to farm credit banks that were in financial difficulties.
Farm Service Agency
SFA
- Stailize income
- help farmers conserve land and water
- provide credit to new or disadvantaged farmers
- help operations recover from effects of disasters
Farmer Mac
FAMC
-exist solely to provide a secondary market for farm morgages.
Federal Financing Bank
FFB
-purpose was to consolidate the financing activities of a number of different federal agencies into one place
Financing Corporation
FICO
-chartered by the Federal Home Loan Bank Board in 1987 to resolve the crisis created by widespread collapse of the savings and loans.
Fitch Rating Service
Provides international financing research on tons and debt securities issued by commercial and government entities.
Freddie Mace
FHLMC
-large secondary market business to buy loans
Intrastate
Within a state
Ginnie Mae
GNMA
- Offered “Pass Through Securities”
- government agency within HUD
Liquidity Investment
May be instantly sold into an established marketplace
Moody’s Investor Service
Provides international financing research on tons and debt securities issued by commercial and government entities.
Mortgaged Back Securities
Instruments issued by various agencies such as GNMA FHLMC to raise investment funds
Mortgage Related Securities
Mortgages that have been purchased by the participants in the secondary market are packaged and used as collateral for the bonds they issue
Private Mortgage Insurance
PMI
-Protects agains loss from default on conventional loans
Real Estate Mortgage Investment Conduit
REMIC
-An entity that can issue CMO securities without double income taxation
Senior Pass Through
The principal amount of a pass through
Standard and Poo’s Rating
Provides international financing research on tons and debt securities issued by commercial and government entities.
Subordinate Pass-Though
The overcollateralized portion of a pass-through
