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Flashcards in The Secondary Mortgage Market Deck (7)
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1

Secondary Market

Where closed and funded mortgage loans are bought and sold between mortgage lenders, banks and investors throughout the world

2

Government Sponsored Enterprises

Three main players in the secondary market to include Freddie Mac, Fannie Mae, and Ginnie Mae

3

Mortgage Backed Security

GSE's buy mortgages underwritten to specific guidelines and create a bond

4

Conforming Loans

Loans underwritten to Fannie and Freddie's guidelines.

5

Ginnie Mae

Doesn't have specific guidelines, but instead guarantees government loans (FHA, VA and USDA)

6

Securitization

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.

7

High Priced Mortgage Loans (HPMLs)

New name for sub prime loans