Chapter 15: Financing To: Primary And Secondary Markets. Key Terms Part 1 Flashcards
Blanket mortgage
A mortgage covering more than one parcel of real estate.
Construction loan
Straight loan for short building period.
Credit union
A cooperative organization for members who save and borrow.
Fannie Mae
A privately owned corporation that set standards and buys mortgages. They are the largest purchasers of mortgages. they provide a secondary market for mortgage loans.
Freddie Mac
The Federal home loan mortgage Corporation: warehouses packages of mortgages. They also provide a secondary market for member savings and loan associations mortgage loans, primarily conventional loans. They have the authority to purchase mortgages, pull them and sell bonds in the open market with the mortgages as security.
Ginnie Mae…The Government national mortgage Association
A Government national mortgage Association: which pools mortgages for investors. They were primarily formed to assist with low income, moderate income and high risk mortgages.
Home equity loan
The additional financing for homeowner: usually a type of second mortgage.
Interim financing
A bridge or swing loan for short-term financing before a sale.
Jumbo loan
A loan higher than those usually bought by the secondary market.
Mortgage banker
The agent who makes real estate loans.
Mortgage broker
The agent who brings together the lender and borrower for a fee.
Open-end mortgage
A mortgage that provides possibility for further borrowing.
Package mortgage
A mortgage covering both real and personal property.
