Instructions: Please post your response to the following questions: What are FHA’s and VA’s roles in the mortgage market?Explain what is meant by an amortizing mortgage.Lara is buying a new home with a mortgage loan for $245,000.00 at 4.5 percent annual interest with a term of 30 years. What is the amount of the monthly payment necessary to amortize this debt?
The mortgage market is now dominated by non-bank
lenders: But rising interest rates and anticipated
deregulation under Trump could change things.
Lerner, Michele
ProQuest document link
ABSTRACT (ENGLISH)
Yet the landscape of the lending market has shifted dramatically over the past few years from domination by big banks to a market where more loans are made by non-banks — financial institutions that only make loans and do not offer deposit accounts such as a savings account or checking account. The withdrawal of banks from the mortgage business is the result of the fundamental shift in regulations that took place in response to the housing crisis, says Meg Burns, managing director of the Collingwood Group, an adviser for financial services companies in Washington.
The cost of complying with new regulations and the risk of making mistakes drove many banks to reduce their mortgage business, says Rick Sharga, chief marketing officer of Ten-X, an online real estate marketplace in Irvine, Calif. In the initial aftermath of the housing crisis and the debacle of loan defaults, banks began to add their own overlays, which are loan-approval guidelines and fees that go beyond the requirements of Fannie Mae and Freddie Mac, says Susan Wachter, a professor of real estate and finance at the Wharton School at the University of Pennsylvania in Philadelphia. “Prior to the financial meltdown, loan-guarantee fees charged by Fannie Mae and Freddie Mac were substantially lower for banks compared to non-banks, but as part of the financial reform, those
fees are now similar for all types of lenders,” Norris says. “Generation Xers and baby boomers have more loyalty to their financial institutions and tend to look first for a…
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o indicates:
•
the total dollar amount of the mortgage requested;
•
the anticipated interest rate, and whether it is to be fixed or adjustable;
•
the periodic payment schedule (constant or graduated); and
•
the amortization period (positive or negative). [See Figure 1, RPI Form
202 (FNMA 1003)]
The property under contract to secure the mortgage is identified and its
intended use set forth in section two. Section two also states the purpose to be
funded by the mortgage, such as purchase-assist or refinance. Also disclosed
is the source of down payment funds and closing costs. [See Figure 1, RPI
Form 202 (FNMA 1003)]
Buyer
information
Information identifying the buyer, such as their name and social security
number, is entered in section three. Space is left to insert any co-borrower
information if the income, assets and liabilities of a co-borrower are to be
considered for mortgage qualification purposes.
A separate form is used to disclose to the lender the applicant’s asset