FINA 475 Study Guide - Final Guide: Fixed-Rate Mortgage, Credit Score In The United States, Strategic Default
11 Dec 2017
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Ch 10, ch 11, ch 24 with pension portfolio management. The original lender is called the mortgage originator. The underwriter approves the loan after considering risks: credit, capacity, collateral. The principal originators of residential mortgage loans are thrifts, commercial banks, and mortgage bankers. Mortgage originators may service the mortgages they originate for. When a mortgage originator intends to sell the mortgage, it will obtain a commitment from the potential investor (buyer) Two government-sponsored enterprises (gses) and several private companies buy mortgages. Pool the mortgages and sell them to investors. Mortgage is securitized if it is used as collateral for issuing a security. Underwriting and the options that exist for mortgage loans once they have been originated. Pti is ratio of monthly payments to monthly income. Measure ability of applicant to make monthly payments (mortgage and real estate tax) Lower the pit, greater likelihood that applicant will be able to make the payment.
