RE Finance Unit 12: The Secondary Mortgage Market Flashcards
Administered Price System
Fannie Mae securities purchasing procedure where required yields are adjusted daily to reflect financial market factors.
Automated Underwriting System (AUS)
The process where advanced artificial intelligence (AI) technology electronically undertakes the decision making process for granting mortgage loans by analyzing one’s credit report.
Desktop Origination
Electronic loan processing.
Desktop Underwriter
Fannie Mae’s electronic system for qualifying borrowers.
Fannie Mae
Formerly the Federal National Mortgage Association (FNMA); provides secondary mortgage market.
Federal Home Loan Bank (FHLB)
A system of regional member-owned corporations that pro- vide lending institutions with a liquidity resource to finance housing and economic development activities.
Federal Housing Finance Agency (FHFA)
An independent regulatory agency responsible for the oversight of vital components of the secondary mortgage markets - the housing government sponsored enterprises of Fannie Mae, Freddie Mac and the Federal Home Loan Bank System.
FICO
Fair Isaac Corporation; company which originated credit scoring.
Freddie Mac
The Federal Agricultural Mortgage Corporation.
Ginnie Mae
Government National Mortgage Association (GNMA); created in 1968 to take over special assistance and liquidation function of Fannie Mae; participates in the secondary market through its mortgage-backed securities pools.
Government-Sponsored Enterprise (GSE)
Fannie Mae and Freddie Mac.
Jumbo Loans
A loan that exceeds the current conforming limits.
Loan Prospector
Freddie Mac’s electronic underwriting source.
Mortgage-Backed Securities
Mortgage pools established by Ginnie Mae that act as collateral for the sale of pass-through securities.
Par
The face value of a bond or security.
