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Unformatted text preview: ia 4 MORTGAGE-BACKED SECURITIES
A. Government Agencies Re-organized as Public Corporations
2. 3. FNMA (1938) (Fannie Mae) organized as government agency. Rechartered in 1968 as public company. Provide funds to assist in
GNMA (1968) (Ginnie Mae); insured pass through because GNMA
guarantees investors of mortgage-backed securities will receive
timely payment of P&I. Re-chartered in 1970 as public company.
GNMA backed by full faith and credit of US Government makes it
marketable! Initial pass-through were fixed rate mortgages More
recent ones include variable rate. The latter typically have shorter
FHLMA (1970) (Freddie Mac) More funds for mortgage market
Public in 1989 All Rights Reserved Dr. David P Echevarria 5 MORTGAGE-BACKED SECURITIES
B. Standard Pass-Through Securities
2. FNMA, GNMA (FHA, VA), FHLMA Mortgage-backed securities
PIP: (Privately Issued Pass-through): backed by non-conforming
3. Not insured by an...
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This document was uploaded on 02/11/2014.
- Fall '09