SMG FE 442 Study Guide - Final Guide: Mortgage Loan, Discount Points, Effective Interest Rate
16 Jul 2019
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The lender was usually willing to renew the debt with some reduction in principal. However, if the borrower were unemployed, the lender would not renew, and the borrower would default: default reason during the great depression in 1930. Borrowers unemployed and unable to make payments to recover, the fed took over many balloon loans and allowed borrowers to repay over long period of times. Pmi would pay the lending institution 20: usually requires on loans that have less than 20% down payment. Insured mortgages: orginitated by banks or other mortgage lenders but are guaranteed by either the federal housing admin (fha) or the. Loan servicing: origination and servicing fees for banks. Securitization of mortgages: mortgage-backed security (securitized mortgage, gov reorganized federal national mortgage association (fannie mae) and created 2 new agencies: the government national mortgage association (gnma or ginnie mae) and the federal home loan mortgage.
