1 / 10

Creating the Secondary Mortgage Market

Creating the Secondary Mortgage Market. Players and History Brenda Buckman. Topics During Presentation. History The Players Secondary Mortgage Market Process How It May Impact You. House Buying Back When…. Banks were “storage” for saved money Was not a place to receive mortgage loans

verne
Download Presentation

Creating the Secondary Mortgage Market

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. Creating the Secondary Mortgage Market Players and History Brenda Buckman

  2. Topics During Presentation • History • The Players • Secondary Mortgage Market Process • How It May Impact You

  3. House Buying Back When… • Banks were “storage” for saved money • Was not a place to receive mortgage loans • The very rich built large apartment and housing complexes for people to live • Only 4/10 households owned their home • Mortgage loan terms: • Limited to 50 percent of the property's market value • Repayment schedule spread over three to five years • Ending with a balloon payment.

  4. Federal Housing Administration • Created as part of the National Housing Act of 1934 • Help get American “back on their feet”

  5. The Major Players • Charter: • To expand the secondary market for mortgages and mortgage backed securities by buying mortgages made by savings and loan associations and other depository institutions.

  6. Conforming Loans • Office of Federal Housing Enterprise Oversight • Sets criteria for conforming loan limits • Applicant's: • Debt to Income ratio • Income • Employment history • Net worth • Credit rating • Open credit lines

  7. Behind the Scenes PMI

  8. How It May Impact You • Underwriting Guidelines • Changes can affect your ability to obtain a loan • Guidelines are to create “conforming” loans • To sell in secondary market • Conforming loans are less likely to default • Paying PMI

  9. Overview • Why the Secondary Mortgage Market was created • The Major Players • Fannie Mae • GinnieMae • Freddie Mac • The process from you to the investor • How this “behind the scenes” market may impact you Questions?

  10. References • Fannie Mae. (2011). Retrieved from http://www.fanniemae.com/ • Feddie Mac. (2011). Retrieved from hhttp://www.freddiemac.com/ • GinnieMae. (2011). Retrieved from http://www.ginniemae.gov/ • Cornett, B. (2009, February 23). How does the secondary mortgage market work?. Retrieved from http://www.homebuyinginstitute.com/mortgage/how-does-the-secondary-mortgage-market-work/ • Oliver, M. (2009, February 23). How the secondary mortgage market works in the united states. Retrieved from http://www.sellingtucsonrealestate.com/blog/how-the-secondary-mortgage-market-works-in-the-united-states/ • Mortgage-backed securities. (2010, July 23). Retrieved from http://www.sec.gov/answers/mortgagesecurities.htm

More Related