Chapter 21 - Overview of Real Estate Finance Flashcards
Fannie Mae
As part of the secondary mortgage market, the nation’s largest investor in residential mortgages
Federal Housing Administration (FHA)
Provides mortgage insurance on loans made by FHA-approved leders throughout the United States and its territories since its inception in 1934. FHA insures mortgages on single-family, multifamily, and manufactured homes and hospitals. It is the largest insurer of mortgages in the world
Freddie Mac
Federally chartered institution that functions as buyer and seller of residential mortgages
Ginnie Mae
Government owned corporation that guarantees payment of principal and interest to investors who buy its mortgage backed securities on the secondary market.
Mortgage Banker
A company, individual, or institution that originates, processes, underwrites, closes/funds, and services mortgage loans.
Mortgage Broker
An individual or company that, for a fee, acts as an intermediary between borrowers and lenders
Mortgage Fraud
A scheme in which some type of material misstatement, misrepresentation, or omission is relied upon by an underwriter or lender to fund, purchase, or secure a loan. Mortgage fraud schemes are usually either fraud for profit or fraud for property
Predatory Lending
Loans that take advantage of ill-informed consumers through excessively high fees, misrepresented loan terms, or frequent refinancing that does not benefit the borrower.
Primary Mortgage Market
When lenders make mortgage loans directly to borrowers. also called primary markets.
Secondary Mortgage Market
The private investors and government agencies that buy and sell real estate mortgages.
Straw Buyer
A person who receives payment from a conspirator for the use of that person’s name and credit history to apply for a loan, generally as part of a mortgage fraud scheme.
