Flashcards in The Secondary Mortgage Market Deck (7)
Where closed and funded mortgage loans are bought and sold between mortgage lenders, banks and investors throughout the world
Government Sponsored Enterprises
Three main players in the secondary market to include Freddie Mac, Fannie Mae, and Ginnie Mae
Mortgage Backed Security
GSE's buy mortgages underwritten to specific guidelines and create a bond
Loans underwritten to Fannie and Freddie's guidelines.
Doesn't have specific guidelines, but instead guarantees government loans (FHA, VA and USDA)
Process by which a bond is created through the pooling of loans together under common Freddie/Fannie standards then sold as a financial instrument in the market with a steady stream of cash flows.