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A mortgage is a loan from banks or mortgage lenders for
the purpose of home-buying. When a borrower takes out a mortgage,
he or she is obligated to pay the mortgage lender the agreed
interest rates and principle in a timely manner within a
certain period of time until the loan is paid off. The bank
or mortgage lender has the right to the borrower's homes
if the borrower is unable to pay back the loan.
A mortgage broker is a licensed individual or financial
company who charges service fees or commission to bring consumers
(borrowers) and mortgage lenders together for the purpose
of loan origination. In the State of New York, residential
mortgage broker is regulated by the New
York State Banking Department.
A licensed financial institution such as a bank, credit
union, or trust company, life insurance or private company
that lends money directly to consumers / borrowers on the
security of land, houses, or real estate.
A licensed lender that originates, arranges, and resells
loans to secondary mortgage lenders like Fannie Mae or Freddie
Mac while retaining rights to loan service maintenance i.e.
loan payments, loan records, taxes, insurance, etc.
A market where mortgage originates. Primary mortgage market
consists of financial institutions or lenders that lend money
directly to consumers. These mortgage lenders sometime sell
their mortgages to the secondary mortgage lenders such as
Fannie Mae or Freddie Mac.
A mortgage market where lenders and investors buy and sell
existing primary mortgages.
Common name for FAMA, the Federal Mortgage Association;
a federally-chartered enterprise owned by private stockholders
that purchases residential mortgages and converts them into
securities for sale to investors; by purchasing mortgages,
Fannie Mae supplies funds that lenders may loan to potential
homebuyers.
Source: www.hud.gov
Common name for Federal Home Loan Mortgage Corporation (FHLM);
a federally-chartered corporation that purchases residential
mortgages, securitizes them, and sells them to investors;
this provides lenders With funds for new homebuyers.
Source: www.hud.gov
The process of determining if the mortgage application should
be approved or rejected based on verification of borrower's
financial information such as credit history and scores.
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Dedicated
mortgage lender