Companies that buy groups of loans from lenders and then sell them to other lenders and investors.
The secondary market allows lenders to get more money in order to offer more loans.
Three federally-charted agencies are important in keeping a steady flow of cash available for loans: Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) and Government National Mortgage Association (Ginnie Mae).
In general, Fannie Mae and Freddie Mac buy and sell loans, and Ginnie Mae issues mortgage-backed securities, which lenders sell to investors.
Mortgage definitions and Real Estate Terms, Consolidating loans, refinancing mortgages and reverse mortgage process available to anyone. This consumer information site contains several tools and guides to aid in purchasing or refinancing a home or commercial property.
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Monday, March 26, 2007
