David p echevarria 4 mortgage backed securities a

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Unformatted text preview: ia 4 MORTGAGE-BACKED SECURITIES A. Government Agencies Re-organized as Public Corporations 1. 2. 3. FNMA (1938) (Fannie Mae) organized as government agency. Rechartered in 1968 as public company. Provide funds to assist in chartered homeownership. homeownership. GNMA (1968) (Ginnie Mae); insured pass through because GNMA GNMA guarantees investors of mortgage-backed securities will receive timely payment of P&I. Re-chartered in 1970 as public company. timely GNMA backed by full faith and credit of US Government makes it GNMA marketable! Initial pass-through were fixed rate mortgages More recent ones include variable rate. The latter typically have shorter payoff times payoff FHLMA (1970) (Freddie Mac) More funds for mortgage market Public in 1989 All Rights Reserved Dr. David P Echevarria 5 MORTGAGE-BACKED SECURITIES MORTGAGE-BACKED B. B. Standard Pass-Through Securities 1. 2. FNMA, GNMA (FHA, VA), FHLMA Mortgage-backed securities PIP: (Privately Issued Pass-through): backed by non-conforming PIP: mortgages mortgages a. 3. 3. Not insured by an...
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