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What are the benefits of well-organized secondary mortgage market?
Reduces the interest rateMaintains liquidityRestructures portfoliosDistributes riskIncreases the homeownershipMore home mortgages are made availableProvides financial stability to lending institutionsFosters economic growthProvides more employment opportunitiesAttracts foreign capital markets to investThe mortgage market earlier allowed only conventional loans to be sold but today the scenario is changing. Even sub-prime loans are gaining entry and they are helping the loan originators to fund more such loans .This cycle is essential to the very sustenance of the mortgage industry.
Fannie Mae and Freddie mac securitize what type of mortgage loans?
Prime
What loans were partially responsible for the home mortgage crisis during the 2000s?
Sub-prime
What is toxic waste in the mortgage market?
sub-prime mortgages
What type of mortgage loans does Countrywide Home Loans offer?
Countrywide Home Loans was bought by the Bank of America in 2008. The company offered a range of mortgage loans including Pay Option and sub-prime mortgages, which now qualify for some loan forgiveness from Bank of America.
What happens to the sub-prime mortgage bonds when people begin to default on loans?
Investors lose their investment.
What percentage of the bad sub prime mortgage loans that were made in the U.S. were made through Fannie Mae and Freddie Mac and what percentage of the loans were made by private companies?
tl;dr
Can a mortgage become sub prime?
No. It begins life as a sub-prime mortgage.
What are the services offered by sub prime?
"Subprime refers to financial material. The subprime category offers student loans, mortgage loans, and automobile loans. The subprime topic is very diverse and confusing and thorough research should be completed before making financial decisions."
Where can I get a great sub prime mortgage?
The fixe rate of interest on a sub prime rate would be anywhere between 1% to 5%. The companies that have these fixed rate mortgages are Countrywide, Quicken Loans and Bank of America.
What services does the company Prime Lenders offer its customers?
Prime lenders services include mortgage loans and home financing in the state of Florida. Prime lenders works to finance family home, condos, mobile, manufactured, and 2-4 family properties.
What is conventional uninsured mortgage?
Candidates for conventional, uninsured loans are considered prime borrowers. They have at least a 20 percent down payment, good credit and enough income to make mortgage lenders feel safe. Lenders require insurance on loans when borrowers lack sufficient money or credit to offset the risk of financing a home.
