This document provides an overview of the mortgage market in the United States. It describes the primary mortgage market where loans are originated by lenders like banks and then sold to investors. It also details the secondary mortgage market where government agencies and private institutions facilitate the buying and selling of existing mortgages through securities like mortgage-backed bonds and pass-throughs. The document outlines the origination process and underwriting criteria lenders use like payment-to-income ratios when providing mortgages to borrowers.

1. Mortgage Lowest Rate

2. Mortgage
Mortgage
A pledge of property to secure payment of a debt.
Mortgagor: Borrower
Mortgagee: Lender

3. II. Primary Mortgage Market
Mortgage Origination
Mortgage Originators
 Savings and Loans
 Savings Banks
 Commercial Banks
 Credit Unions
 Mortgage Banks
 Life Insurance Companies
 Pension Funds

4. Mortgage Payment Calculator
Origination Process
 Application
 Criteria
 Payment-to-Income Ratio (PTI)
The ratio of monthly payment to monthly income.
 Loan-to-Value Ratio (LTV)
The ratio of the amount of the loan to the market (or
appraised) value of the property.
 Credit Scoring
 Commitment Letter to the Applicant

5. III. Secondary Mortgage Market
Conduits
Federally Sponsored Agencies
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
Private Institutions
Residential Funding Corporation
GE Capital Mortgage Services
Countrywide
Prudential Home Mortgage

6. IV. Mortgage-Backed Securities
Mortgage-Backed Bonds
FNMA
Freddie Mac
Pass-Throughs: Government guaranteed mortgages
GNMA
Privately Issued Pass-Throughs (PIPs)

7. Participation Certificates (PCs): Conventional
mortgages pooled by Freddie Mac
Collateralized Mortgage Obligations (CMOs)

8. Contact Number 1 800 929 0625
Properties
Residential Properties
 Single-Family Structures
 Multifamily Structures
Nonsidential Properties
 Commercial
 Farm

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