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
Last February, Florida Attorney General and 48 other states entered into a settlement agreement with five of the nation’s largest mortgage servicers: Bank of America, Citibank, JPMorgan Chase, Wells Fargo, and Ally/GMAC. Their liability stems from their systemic abuse of the foreclosure process as well as inappropriate mortgage-servicing practices. Read the rest of this entry