REE-3043 Lecture Notes - Lecture 15: Lenders Mortgage Insurance, Freddie Mac, Discount Points

• School: FSU
• Department: Risk Management/Insurance, Real Estate and Legal Studies
• Course: REE-3043
• Professor: William M Woodyard

Document Summary

Mortgage markets: primary mortgage market, lenders and borrowers, secondary mortgage market, conduits, investment bankers and investors, federal natio(cid:374)al mortgage associatio(cid:374) (cid:862)fa(cid:374)(cid:374)ie mae(cid:863, federal ho(cid:373)e loa(cid:374) mortgage corporatio(cid:374) (cid:862)freddie mac(cid:863) Conventional fixed-payment mortgage: conventional loans, conforming loans, nonconforming loans (e. g. , jumbo loans, fixed-payment, fully-amortizing mortgages, principal, interest, term, payment frequency, amortization. Adjustable rate mortgages: the index and margin. Initial interest rate, adjustment interval, rate caps, and teasers: the new contract rate is the minimum of, current index + margin, previous contract rate + annual cap. Other mortgage types: purchase money mortgages, package mortgages, reverse annuity mortgages (rams) Home equity loans: types of loans, closed end loans, open-end lines of credit. Depository lenders in the primary market: commercial banks, savings institutions. Nondepository lenders in the primary market: mortgage bankers, mortgage brokers, others. Government-sponsored mortgage programs: fha-insured loans, va-guaranteed loans. Fha-insured loans: fha loans are made by private lenders through various programs (e. g. , section. The secondary mortgage market: federal national mtg.