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Flashcards in Secondary Mortgage Market Deck (8)
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1
Q

Federal Home Loan Mortgage Corporation (FHLMC)

A

Freddie Mac

Second major player in the secondary mortgage market; the Emergency Home Finance Act of 1970

2
Q

Federal National Mortgage Association (FNMA)

A

Commonly known as Fannie Mae, it was established in 1938 as a government corporation to create a secondary market for FHA loans

3
Q

Government National Mortgage Association (GNMA)

A

Called Ginnie Mae, a government corporation under the control of the Department of Housing and Urban Development, it administers special assistance programs in secondary market activites

4
Q

Loan Servicing

A

Collecting payments from the borrower and passing them along to the investor for a fee; may be separated from the sale of the loan or it may be included

5
Q

Mortgage Participation Certificate (PC)

A

Guaranteed mortgage securities that are sold to the public through securities dealers

6
Q

Pass-Through Certificate

A

A security interest in a pool of mortgages that provides for a monthly “pass through” of principal and interest payments directly to the certificate holder; a guarantee by Ginnie Mae

7
Q

Primary Mortgage Market

A

A market in which lenders originate loans and make funds available to borrowers

8
Q

Secondary Mortgage Market

A

The purchasing and selling of existing mortgages and trust deeds

Decks in SCC REA 201 Class (75):