FHLMC ANS: Federal home loan mortgage corporation, freddie mac. purchases conventional mortgages from insured depository institutions and hud approved mortgage bankers.
FNMA ANS: federal national mortgage association or fannie mae. a tax paying cooperation created by congress that purchases an...
FHLMC ANS: Federal home loan mortgage corporation, freddie mac. purchases conventional mortgages
from insured depository institutions and hud approved mortgage bankers.
FNMA ANS: federal national mortgage association or fannie mae. a tax paying cooperation created by
congress that purchases and sells conventional residential mortgages as well as loans insured by cha or
guaranteed by Va. makes mortgage money more available and more affordable.
adjustable rate mortgage ANS: the margin is fixed by the lender and the index must be beyond the
control of the lender and easily verifiable by the borrower
assignee ANS: the party who receives the ownership interest in a mortgage
assignor ANS: the party who transfers or gives the ownership interest in a mortgage
basis points ANS: a unit of measurement used to describe yield. a basis point is 1/100 of 1% 100 basis
points=1% 75=3/4% 50=1/2%
caveat emptor ANS: let the buyer beware
closing ANS: a real estate/mortgage term used to describe the procedure finalizing the loan process
closing statement ANS: aka hud-1 settlement statement. lists all of the costs associated with the loan
conforming loan ANS: a mortgage loan that meets the requirements and criteria of fannie mae and
freddie mac page 45
non conforming loan ANS: any conventional loan that does not meet the requirements or guidelines set
forth by fannie mae or freddie mac. this type of loan usually allows for higher debt ratios, lower credit
scores and or less documentation.
conventional loan ANS: is neither insured nor guaranteed by the government
conveyance ANS: transfering of a property title from one individual to another
deed in lieu of foreclosure ANS: k
defeasance clause ANS: a legal clause in the mortgage requiring the lender to issue the borrower a
recordable satisfaction or mortgage within 60 days when the loan is paid in full.
desktop underwriting ANS: fannie mae
, loan prospector ANS: freddie mac 1970
Gnma ANS: ginnie mae. government agency operates within the department of hud. purpose is to
operate its mortgage backed securities. these securities are guaranteed by ginnie mae and are issued by
banks, and other institutions. backed by the full and credit guaranty of the us governement and are back
by cha va or usda mortgages.
ginnie mae security ANS: ginnie mae buys mortgages from banks and financial institutions bundles them
together and then markets portions of these bundles to investors, called mortgage backed securities.
Hud ANS: department of housing and urban development. regulates FHA and ginnie mae.
FHA ANS: (Federal Housing Administration) Government agency that insures mortgage loans.
loan to value ANS: loan amount divided by the purchase price or appraised price (which ever is less)
PMI ANS: Private Mortgage Insurance. issued by a non-governmental entity. protects against default,
required when ltv exceeds 80%
open end credit ANS: where a borrower can use credit up to a stated limit
closed end credit ANS: a one time loan that you will pay back over a specified period of time in
payments of equal amounts
PITI ANS: Principal, interest, taxes and insurance.
points ANS: each point equal to 1% of the loan amount. is paid to lender to decrease the interest rate.
regulation z ANS: provision extending truth-in-lending disclosures to consumers
a profit obtained from an investment ANS: yield
a complete historical and recorded summary, in date order, of all documents affecting the title and
ownership of a parcel of real estate ANS: abstract title
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