Chapter 13 - The Mortgage Market Flashcards
Conforming loans
Loans that meet Fannie Mae guidelines regarding size and type of loan.
Demand deposits
Checking accounts.
Discount points
An extra upfront fee charged by lenders to increase the real yield or the APR.
Discount rate
The interest rate charged member banks for borrowing from the Fed.
Disintermediation
The removal of intermediaries; buyers bypass the middlemen.
Intermediation
Financial institutions serve as intermediaries between depositors and borrowers.
Monetary policy
The actions undertaken by the Fed to influence the availability and cost of money and credit.
Mortgage banker
Mortgage bankers originate loans with either their own funds or with money borrowed from financial institutions.
Mortgage broker
A mortgage broker is a middleman who brings together borrowers and lenders.
Mortgage company
A company that originates loans with either their own funds or borrowed capital.
Office of Thrift Supervision (OTS)
The OTS charters and regulates member federal savings associations.
Open market operations
Purchase and sale of U.S. Treasury and federal agency securities.
Primary market
A market where securities are created.
Reserve requirements
The amount of funds that an institution must hold in reserve against deposit liabilities.
Secondary market
An investor market that buys and sells already existing securities.
