(Ginnie Mae) Governmental National Mortgage Association
~ Federal Agency a division of HUD. Deals primarily with financing subsidized
housing for low income citizens, and high risk loans that are not marketable to other
agencies.
Freddie Mac
~ an independent agency that favors conventional...
✓~ Controls all nationally-chartered banks in the country as well as all of the state
chartered banks that choose to protect their depositor's funds through the FDIC. Can
raise or lower discount rate. Can raise or lower reserve requirements. Can buy or sell
U.S. treasury securities.
Discount Rates
✓~ Indicates the cost of credit for member banks.
Increased rates result in
Less credit extended, Interest rates increase and Economy slows
Decreased rates result in
More credit extended, Interest rates decrease and Economy stimulated
Federal Reserve Requirements
, ✓~ Increased requirements result in
Less credit extended, Interest rates increase & Economy slows
Decreased requirements result in
More credit available, Interest rates decrease & Economy stimulated
U.S. Treasury Securities
✓~ Buying treasury securities
Adds money to the economy = Rates decrease = Economy stimulated
Selling treasury securities
Subtracts money from the economy = Rates decrease = Inflationary trends slow
Annual Percentage Rate (APR)
✓~ The relative cost of credit to the borrower expressed as a percentage of
interest. Numbers shown in advertising are usually higher than the stated interest
rate.
pledged
, ✓~ the basis for the mortgage lending business is the real property that is
collateral security for a loan.
Equitable Right of Redemption
✓~ Permits a borrower to reclaim property even after seizure at any time prior to
foreclosure by paying the debt.
hypothecation
✓~ the borrower is allowed to retain possession and control of the property when
the loan is made.
equitable title
✓~ a right enabling the borrower to obtain absolute ownership in the future.
satisfaction
✓~ when a loan has been repaid, the lean is removed by recording a satisfaction.
jointly and severally liable
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Stuvian. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.69. You're not tied to anything after your purchase.
