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19 Cards in this Set
- Front
- Back
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Correspondent
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A mortgage banker who originates mortgage loans that are sold to other mortgage bankers or financial institutions.
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Demand Deposits
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Money that is immediately accessible and a customer may elect to withdraw from the bank at any time.
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Disintermediation
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The loss of deposits to competing investments that offer higher returns.
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Federal Deposit Insurance Corporation (FDIC)
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A public corporation, established in 1933, that insures up to $250,000 for each depositor for most member commercial banks and S & L's. FDIC has its own reserves and can also borrow money from the US Treasury. |
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Federal Home Loan Mortgage Corporation (Freddie Mac)
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Nonprofit, federally chartered institution (now privately owned) that functions as buyer and seller of residential mortgages
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Federal Housing Finance Agency (FHFA)
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Government agency that merged the powers and regulatory authority of the federal housing finance board (FHFB) and the office of federal housing enterprise oversight (OFHEO) as well as the GSE .
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Federal National Mortgage Association (Fannie Mae)
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The nations largest, privately owned investor in residential mortgages.
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Government National Mortgage Association (Ginnie Mae)
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Government owned corporation that guarantees payment of principal and interest to investors who buy its mortgage backed securities on the secondary market.
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Government Sponsored Enterprise (GSE)
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A group of financial services corporations created by the United States 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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Mortgage
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An instrument that creates a voluntary lien on the real property to secure repayment of a debt. The parties to a mortgage are the mortgagor (borrower) and a mortgagee (lender.)
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Mortgage Backed Security (MBS)
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A Fannie Mae security that represents an undivided interest in a group of mortgages. Principal and interest payments from the individual mortgage loans are grouped and paid out to the MBS holders.
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Mortgage Banker
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Party who originates, sells, and services mortgage loans, and usually acts as the originator and servicer of the loan on behalf of large investors, such as a insurance companies, pension plans or Fannie Mae.
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Mortgage Broker
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Party, who for a fee, places loans with investors but typically does not service such loans.
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Mortgage Loan Originator (MLO)
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Per 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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Primary Mortgage Market
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When lenders make mortgage loan directly to borrowers, also called Primary Market.
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Securitization
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Act of pooling mortgages and then selling them as mortgage backed securities
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Service Release Premium (SRP)
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The payment received by a lending institution, such as a bank or retail mortgage lender, on the sale of the right to service a closed mortgage loan.
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Federal Housing Authority (FHA)
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- Created in 1934, by the National Housing Act - Does not fund loans, rather insures banks in the case of default on the borrowers - Provides mortgage insurance so banks do not incur losses - Under FHA, there are no income limits on borrowers -In 1965, FHA became a part of the Department of Housing and Urban Development (HUD) |
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