1 / 11

Secondary Mortgage Market Resources Do You Need to Sell Some Loans???

Secondary Mortgage Market Resources Do You Need to Sell Some Loans???. North Carolina Affordable Housing Conference Durham, NC October 16 & 17, 2008 Presented by: Miles O. Vaughn Fannie Mae . The Housing Finance Market.

Thomas
Download Presentation

Secondary Mortgage Market Resources Do You Need to Sell Some Loans???

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Secondary Mortgage Market ResourcesDo You Need to Sell Some Loans??? North Carolina Affordable Housing Conference Durham, NCOctober 16 & 17, 2008Presented by:Miles O. VaughnFannie Mae

  2. The Housing Finance Market • Where all activities related to the origination, sale, securitization, and servicing of residential mortgages takes place • Two components: • Primary Mortgage Market • Secondary Mortgage Market

  3. Primary Mortgage Market • Mortgages are originated and funds loaned directly to borrowers • Some key players: • Commercial Banks • Credit Unions • Mortgage Companies • Housing Finance Agencies (i.e. North Carolina Housing Finance Agency)

  4. Secondary Mortgage Market • Market where residential mortgages and mortgage-backed securities (MBS) are bought and sold • Mortgage-backed securities are pools of mortgages with similar features bundled into an investment instrument (securitization) • Some key players: • Fannie Mae • Freddie Mac • Ginnie Mae • Pension Funds • Commercial Banks

  5. Borrowers (Pay Mortgages) Fannie Mae, Freddie Mac, FHLB Capital Markets Pension Funds, Investors Lenders/Originators (Banks, HFA, S&L’s, Credit Unions, etc.) Housing Finance Market Dynamics

  6. Fannie Mae’s History • Created in 1938 to help combat the adverse effects of the Great Depression • High unemployment • Massive bank closures • Tightening of availability of mortgage financing • Mission is to provide stability, liquidity and affordability to America’s housing market, in good times and bad.

  7. How Fannie Mae Provides Liquidity Fannie Mae provides liquidity in two ways: • Purchase mortgages from lenders • Hold these mortgages in portfolio • Provide cash to lenders so they can fund additional mortgages • In order to finance the mortgages we purchase, we issue debt securities to capital market investors (continued)

  8. How Fannie Mae Provides Liquidity (con’t) • We issue mortgage-backed securities (MBS) • Pool the loans from lenders and bundle into MBS • MBS are owned by lenders and are backed by the underlying mortgages • MBS are very liquid and lenders can sell them or hold them • Fannie Mae guarantees timely payments of interest and principal of MBS • Fannie Mae earns guarantee fee

  9. Fannie Mae’s Key Business Groups • Capital Markets - Purchases and sells our portfolio mortgage loans, MBS, and other mortgage-related securities • Single-Family Mortgage Business- Offers our lender partners mortgage products and services that helps borrowers buy and keep their homes • Housing and Community Development- Works with housing partners to help stabilize and expand supply of affordable and market-rate rental housing

  10. Benefits to Borrower • Insures steady stream of funding is available • Allows for competitiveness in mortgage rates • New technologies that make buying a home quicker, easier, and less expensive

  11. Contact Information Miles O. Vaughn Senior Business Developer Fannie Mae 112 South Tryon Street, Suite 1100 Charlotte, N.C. 28284 Miles_o_vaughn@fanniemae.com (704) 344-6964

More Related