Sources Of Financing Flashcards
Alienation clause/Due-on-Sale clause
Requires immediate repayment of the loan if ownership transfers
Automated underwriting system
Computerized systems for loan approval communication between a loan originator and the investor
Computerized loan originator
Originating loans through the use of the networked computer system
Disintermediation
The result created when lenders are required to pay high rates of interest for deposits while receiving long-term income from low-interest-rate mortgage loans
Fannie Mae
A real estate industry nickname for the Federal National Mortgage Association
Freddie Mac
A real estate industry nickname for the Federal Home Loan Mortgage Corporation
Mortgage broker
One who brings together borrowers and lenders
Mortgage company
A firm that makes mortgage loans and then sells them to investors
Participation certificates
A certificate representing an undivided interest in a Freddie Mac pool
Primary market
The market in which lenders originate loans and make funds available to borrowers
Secondary mortgage market
A market in which mortgage loans can be sold to investors
Usury
Charging an interest rate that is in excess of the legal rate
