Mortgage guaranty insurance, however, doesn't cover losses from hazards, such as floods, storms, earthquakes, fire or hurricanes, Zimmerman said.
Fannie Mae and Freddie Mac, by far the largest secondary market purchasers of residential mortgage loans, are required by their charters to have mortgage guaranty insurance on all loans they acquire with a loan-to-value ratio of 80% or more.
They can cut their interest rate, which reduces mortgage terms and interest expense and increases their overall cash flow.
When Lori Allen of Reeders, Pennsylvania, refinanced her home mortgage in January, it helped solve a number of cash flow problems.
In an earlier study we assessed the performance of the major participants in the market for home purchase mortgages by examining the distribution of the mortgage credit risk borne by these institutions.
In this article we revisit the issue of who bears the credit risk associated with mortgage lending using 1995 data and refined estimates of the amount of mortgage credit risk borne by market participants.
This Statement requires that a mortgage banning enterprise assess its capitalized mortgage servicing rights for impairment based on the fair value of those rights.
This Statement applies prospectively in fiscal years beginning after December 15, 1995, to transactions in which a mortgage banking enterprise sells or securitizes mortgage loans with servicing rights retained and to impairment evaluations of all amounts capitalized as mortgage servicing rights, including those purchased before the adoption of this Statement.
3 million first mortgage
and a $100,000 line of credit for a co-op building on 79th St.
Many of those who believe it is see parallels between recent developments in the insurance industry and the history of another financial-services industry, mortgage
The credit risk associated with a mortgage
is accommodated through a variety of financial arrangements and institutions.