"Urban alleges that FHLMC
promised to pay for her title insurance if she agreed to utilize the title insurance company used by its agent or attorney.
The current median prices reflect overall decline, but the index values from FHFA, First American and FHLMC
are more favorable, with generally positive value changes.
The term conforming essentially apply to those conventional mortgage loans that "conform" to the guidelines established by Fannie Mae (FNMA, or the Federal National Mortgage Corporation), Freddie Mac (FHLMC
, the Federal Home Loan Mortgage Corporation) and Ginnie Mae (GNMA, the Government National Mortgage Association).
Public policy for the housing market had developed along the path that the role of government was to provide financing, or at least a seal of approval, from the Federal Housing Administration, as well as secondary market liquidity in the form of several government-sponsored enterprises, such as FNMA and FHLMC
. This financing boosts the liquidity in the mortgage market.
Many large mutual fund families offer funds that invest in mortgage-backed securities such as participation certificates (PCs) issued by GNMA, FNMA, FHLMC
, private issuers, and CMOs.
While there was a 2% increase for insurer holdings issued or guaranteed by GNMA, FNMA, FHLMC
or VA, there was a 64% decline for those securities issued by non-U.S, government issuers and then collateralized by mortgage-backed securities issued or guaranteed by government agencies.
A catalyst for the development of mortgage securitization in the United States was the federal government's sponsorship of a few financial agencies, namely, the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC
), and GNMA.
Although the bonds were sold to retail and institutional investors, about 75 percent of the bonds were purchased by Fannie Mae and FHLMC
30, all of the assets in the company's portfolio were FNMA, GNMA or FHLMC
securities, which carry an implied "AAA" rating.
The California Association of Realtors argued that "Any increase in required capital for the FNMA and FHLMC
will reduce the supply of lendable funds in the primary mortgage market and raise mortgage interest rates" and dismissed the prospects of a taxpayer bailout as "extremely remote" (U.S.
Assets that have been securitized include residential mortgages, commercial mortgages, agency securities (GNMA, FNMA, FHLMC
), consumer receivables (credit card loans, home equity loans), retail installment loans (automobile, recreational vehicle, mobile home), time-share mortgage loans, trade receivables, insurance-policy-related receivables, leases (equipment, operating, automobile), student loans, high-yield corporate bonds, and Federal assets.
For the sake of diversification, the portfolio comprised both SBA and Federal Home Loan Mortgage Corporation (FHLMC
Here's how ARMs work: Banks make adjustable rate mortgage loans and typically sell them to government agencies such as the Government National Mortgage Association (GNMA or Ginnie Mae), the Federal National Mortgage Association (FNMA or Fannie Mae), or the Federal Home Loan Mortgage Corporation (FHLMC
or Freddie Mac).
These bonds were collateralized by a group of fixed-rate home mortgages that had been pooled into mortgage certificates issued and guaranteed by the Federal Home Loan Mortgage Corporation (FHLMC