Foundations of the Mortgage Industry (Part II)
There are two markets that structure the mortgage industry.
- The primary market: Where loans are originated. This consists of Brokers, Mortgage Loan Officers, Banks, Credit Unions and Thrifts.
- The secondary market: Where loans are sold. This consists of Fannie Mae (FNMA), Freddie Mac (FHLMC), Ginnie Mae (GNMA), Wall Street, and wholesale line of credit accounts. Interesting to note, FHA, VA, and USDA are in neither market. Read the rest of this entry
Foundations of the Mortgage Industry
Understanding the foundations of the mortgage industry can be very helpful when venturing into for the first time. Even if you have some experience with getting financed for a home, knowing and understanding these foundations can give you an upper hand when shopping for the best deal. Let’s get started. The fact is that 93% of homes in America are financed through either the private sector or government sector. The breakdowns of these sectors are below. Read the rest of this entry
What Is Your Credit All About?
Understanding how your credit works is vital in today’s world. Nowadays, it seems that your credit matters more than how much cash you have in the bank. So here is a summary of what it’s all about. The three big credit agencies are Experian, Equifax, and TransUnion, also known as repositories. Each agency uses a scoring system from the information reported to them about consumers. TransUnion’s uses what is called a Vantage Score, while Experian and Equifax is FICO or Beacon. Within these agencies there are three types of credit reports that can be pulled. Read the rest of this entry
I wanted to start this blog out with questions about the bank statements you have to turn in to your broker. Over the past 2 months I have had several questions about the reason for the bank statements and more importantly the reason for the review of each deposit that goes into your bank account. Read the rest of this entry
DEED-IN-LIEU: Freddie’s Plan to Help Jump Start the Residential Real Estate Market
The Federal Housing Finance Agency, will be implementing new procedures to help with the ongoing housing crisis. Planning on increasing servicers incentives for completing a deed-in-lieu of foreclosure, they have created a Single-Family Seller Servicer Guide. Read the rest of this entry