The document discusses the mortgage market, including what a mortgage is, the primary and secondary markets, the roles of Fannie Mae and Freddie Mac, impacts of the mortgage crisis, and the future of the mortgage market. It notes that Fannie Mae and Freddie Mac purchase about 80% of new home mortgages and held $1.5 trillion in mortgages and MBS by 2008. The government took over Fannie Mae and Freddie Mac as conservator in 2008 and introduced programs like HAMP to help homeowners avoid foreclosure. The future of the GSEs and mortgage-backed securities is uncertain and dependent on economic conditions.
The General view of mortgage which helps to understand the Loan cycle. The mortgage is divided into many different processes like credit income, collateral, underwriting, loan set up, processing etc. Any query related to mortgage please write. I will do my best to resolve your query.
I am also freelancer for the different financial product. Any assistance related to any financial product you can reach out to me.
The General view of mortgage which helps to understand the Loan cycle. The mortgage is divided into many different processes like credit income, collateral, underwriting, loan set up, processing etc. Any query related to mortgage please write. I will do my best to resolve your query.
I am also freelancer for the different financial product. Any assistance related to any financial product you can reach out to me.
This presentation explains the events and causes that led to Global Financial Crisis in 2007-08, mainly focused on Collateralized Debt Obligations, Sub-Prime Mortgages, Credit Default Swaps and Housing Bubble.
This presentation, "Alternative Financing," hosted by Financial Poise is a part of a webinar series on business borrowing basics. This session focuses on "hard money" lenders and other alternative financing sources who serve borrowers unable to obtain conventional financing.
Mortgage Banking Seminar is part of the continuing series of training presentations for the Financial Services Industry. Check out our other presentations in this series and contact Saunders Learning Group if you have training needs. We can help, we have been doing training in the financial services industry for 30 years.
This presentation explains the events and causes that led to Global Financial Crisis in 2007-08, mainly focused on Collateralized Debt Obligations, Sub-Prime Mortgages, Credit Default Swaps and Housing Bubble.
This presentation, "Alternative Financing," hosted by Financial Poise is a part of a webinar series on business borrowing basics. This session focuses on "hard money" lenders and other alternative financing sources who serve borrowers unable to obtain conventional financing.
Mortgage Banking Seminar is part of the continuing series of training presentations for the Financial Services Industry. Check out our other presentations in this series and contact Saunders Learning Group if you have training needs. We can help, we have been doing training in the financial services industry for 30 years.
Mortgage Basics provides information about mortgage products and programs that will help real estate agents realize success. Topics include:
- when you need to ask for more time to close,
- property types and characteristics that might be more difficult to sell (and how to sell them),
- how to use various products/programs to help increase a buyer's purchasing power.
What is the real cost of a mortgage? Should you be paying off your mortgage as fast as possible? If so, what is the safest way to do it? We show our clients how to lower their mortgage interest payments and total cost while maintaining access to their equity, without any changes to their current spending habits.
U.S. Lending Industry Meets Mortgage Process as a ServiceCognizant
In a challenging and changing market, mortgage process as a service, orMPaaS, can provide banks with the talent and systems to handle essen¬tial lending services, enabling them to focus on rebuilding their business through product innovation to capture market share.
This complete deck can be used to present to your team. It has PPT slides on various topics highlighting all the core areas of your business needs. This complete deck focuses on Financial Crisis PowerPoint Presentation Slides and has professionally designed templates with suitable visuals and appropriate content. This deck consists of total of twenty eight slides. All the slides are completely customizable for your convenience. You can change the colour, text and font size of these templates. You can add or delete the content if needed. Get access to this professionally designed complete presentation by clicking the download button below. https://bit.ly/3fyIZc7
FIN 4303 – RVEFinancial Markets and InstitutionsSpring 2019G.docxcharlottej5
FIN 4303 – RVE
Financial Markets and Institutions
Spring 2019
Group Project – Research Paper
Your team is an independent panel hired by the Chairman of the Finance Committee of the House and Senate to investigate the Subprime Mortgage Crisis and its aftermath. In 10 weeks, you will report your findings to the Committee.
The written report to the Committee is to include:
Part I (50%)
1. Summarize the subprime mortgage crisis and its aftermath in a chronological format, highlighting only significant events that occurred. Be sure to include the starting point, as you see it.
2. Outline the role that each party played in the subprime mortgage crisis. Identify the names of the companies that played a major role and briefly provide an update of their present status:
a. Mortgage companies/ brokers
b. Subprime borrowers
c. “Money center” banks
d. Investment bankers
e. Mortgage credit insurers (Freddie Mac, Fannie Mae, Ginnie Mae)
f. Credit rating agencies (the big 3)
g. Investors (Pension funds, hedge funds, global investors)
3.
Identify the winners and losers from this financial event. Clearly state your reasons.
4.
Describe the magnitude of the effects to the national and international economy, through data and statistics, and present your opinions about whether AIG should have been allowed to fail.
Part II (50%)
1. Summarize the actions already taken until now by the Federal Reserve and Federal Government to ease the credit crisis.
2. Based on your research and your knowledge of the current economic environment, forecast economic growth and the direction of interest rates in the following one year and outline a series of recommendations for the Finance Committee to consider to control the effects of the financial crisis and avoid an occurrence in the future. Specify which ones you believe would be the most effective. Consider practicality, timeless, cost, timeframe and effect of implementation.
Recommendations could cover governmental policy or action, monetary policy, regulatory, and private industry.
3. The Ethics Committee also wants the panel to identify which parties should be investigated for potential ethics violations and the potential role they played that would be considered unethical behavior during the credit crisis. Begin with a definition of ethical standards in business.
4. This crisis is the most serious economic crisis in the world history. European countries also suffer another wave of financial crisis. Summarize what the European debt crisis is and how would the European debt crisis play out? What really caused the Eurozone crisis? Are Americans responsible for European woes?
The written report is due on April 24 at 2:00 PM. Groups are required to electronically submit a copy of your report using Canvas Course Mail. The report must be presented in professional manner and must be submitted before deadline. Late project will be assessed a penalty of 10% points per day. Each group will be responsible for subm.
1. The Mortgage Market Presented by: Brady Anderson Chad Atkinson Charles Jones McLeod Robinson Laura Rogers
2. What Is a Mortgage? A mortgage is a method of using property as security for the performance of an obligation, usually the payment of a debt. Arranging a mortgage is seen as the standard method by which individuals and businesses can purchase residential and commercial real estate without the need to pay the full value immediately.
3. Two Markets Primary market: where mortgage origination takes place. Lenders creating mortgages in this market include banks and other financial institutions. Secondary market: where mortgages are resold. Mortgages in this market are often grouped together into tranches based on risk, size, and structure and are then sold as a collateralized debt obligation, mortgage-backed security, or other type of derivative.
4. How the Mortgage Market Operates What does the Primary Mortgage Market Mean? Who sets the interest rates that we pay on our mortgages?
5. What is the Secondary Mortgage Market? How does it work? Who are the main participants in this section of the mortgage market?
6. What role do Fannie Mae and Freddie Mac play in our Mortgage Market? Fannie Mae A.K.A-Federal National Mortgage Association Freddie Mac A.K.A-Federal Home loan Mortgage Corporation
7. The Main operation of the Mortgage Market To provide people or families with the money to purchase a home
8. Mortgage Impacts Banks MBS-Mortgage Backed Securities MBS provide capital to banks from their resale in the market As a result of the recent mortgage crisis banks credit lines have shrunk dramatically due to loss of value in MBS.
9. Mortgage Impacts In the Fall of 2008 key financial firms failed due primarily to subprime lending causing many people to withdraw from the money market As a result many banks and general businesses lost their main supply of credit and lenders abruptly stopped lending due to increased credit risk
10. Mortgage Impacts Personal wealth can also be directly associated with the mortgage market. A downward spiraling housing market has put a strain on many peoples wallets causing overall consumption to slow down This has had an adverse effect on many businesses, particularly the auto industry.
11. The History of the Mortgage Market: Fannie Mae Created in 1938 as part of Franklin D. Roosevelt’s New Deal. Established in order to provide local banks with federal money to finance home mortgages. Initially, it operated like a national savings and loan, allowing banks to charge low interest rates on mortgages which led to the secondary mortgage market. In 1968, Lyndon Johnson privatized Fannie Mae in order to remove it from the national budget. At this point, Fannie Mae began operating as a GSE.
12. The History of the Mortgage Market: Freddie Mac Created in 1970. Was formed to prevent any further monopolization by Fannie Mae in the market and to expand the secondary market for mortgages. Was established as a private corporation through the Emergency Home Finance Act of 1970.
13. The Mortgage Market Today 2008: Fannie Mae and Freddie Mac had purchased about 80% of all new home mortgages in the U.S. By June 30th, 2008, Fannie Mae and Freddie Mac held $1.5 trillion in mortgages and MBS. 2008: 5.4 million homeowners (almost 12% or mortgage-holders) were in default or foreclosure. 2008: 13.6 million homeowners owed more than their homes were worth. Unemployment and mortgage delinquency.
14. The Mortgage Market Today July 30th, 2008: Federal Housing Finance Agency (FHFA) created to regulate Fannie Mae and Freddie Mac. The Economic Recovery Act September 7, 2008: FHFA becomes conservator for Fannie Mae and Freddie Mac. Government financing agreement. The Home Affordable program
15. The Future of the Mortgage Market Presented by: Brady Anderson Chad Atkinson Charles Jones MCleod Robinson Laura Rogers
16. Making Home Affordable Program The Home Affordable Refinance Program Designed to make refinancing available to borrowers with loans guaranteed by government sponsored enterprises. (Fannie Mae and Freddie Mac) The Home Affordable Modification Program Designed to provide aid to borrowers specifically facing or undergoing foreclosure by providing incentives to lenders, borrowers, investors and servicers.
17. Increased support to GSE’s This program significantly increases government commitment to Fannie Mae and Freddie Mac, doubling its investment from 100 to 200 billion for each entity. As a result this significantly raises the dollar amount of mortgage value each GSE can maintain. It is hopeful that this program may help 7-9 million American families avoid foreclosure.
18. Is it Enough? Irresponsible financial institutions have bared much of the blame in the collapse of the mortgage market The US government has issued billions upon billions of dollars to keep these large financial entities afloat. It is hard to tell if all of these support programs will work or if they are just a colossal waste of taxpayers money.
19. Will GSE’s work? Some believe these support programs could end up working well resulting in lower expenses for borrowers and more money for businesses Others believe a total nationalization of unhealthy financial institutions is the best option in order to clean up the banking system and then quickly resell these instutions once their bad debt and management have been cleaned up.
20.
21. Congress would replace Fannie and Freddie with one or two private sector entities that would purchase and securitize mortgages with a credit guarantee backed by the federal government.
22.
23. The Long-Term Future of Fannie Mae and Freddie Mac They will likely require federal cash infusions, by buying their mortgage-backed securities, or other investments, for at least a decade, probably longer. Once Fannie Mae and Freddie Mac become profitable the government will hope to recoup their investment by selling off stock to the public. Fannie Mae and Freddie Mac have long been considered “too big to fail”. So as long as they continue to be backed by the federal government they will most likely remain in business.
24. The Immediate Future of Ginnie Mae In the past two years Ginnie Mae has grown exponentially. Ginnie Mae will continue to grow and prosper as long as the market stays down. This is because Ginnie Mae acts like a utility, and has the only MBS’s that are backed by the full faith and credit of the US government.
25. The Immediate Future of Ginnie Mae Ginnie Mae could also gain more power if international investors become more involved If Fannie Mae and Freddie Mac recover, Ginnie Mae could possibly start to decline because of lower returns
26. The Long-Term Future of Ginnie Mae Even if Fannie Mae and Freddie Mac recover, there will still probably be room for Ginnie Mae. This is because of the timely payments of Ginnie Mae that are guaranteed by the US government.
27. The future market for Mortgage-Backed Securities The current market conditions Short-term or intermediate market Long-term perspectives
34. Long-term perspectives Eventually, the market will get back on track. Mortgages will increase, and defaults will decrease. But in the long-run investors will be scared of MBS’s because of what has happened recently in the market. The MBS market may never again be where it once was because investors and borrowers see how much it can influence the overall economy.
35. The Future of Mortgage Rates What affects mortgage rates? The default rate Early loan payoff Loan fraud Foreclosures Lender margins Inflation Economic news Supply and demand of mortgage-backed securities.
36. Current Events and Future Mortgage Rates Today, there are many different speculations about the future of mortgage rates. Current economic events and the actions of the Fed and other entities will be pivotal in determining future rates. Future unfolding of the housing crisis will also influence future mortgage rates. Ultimately, the actions of the Fed today and over the next few years could make the difference between another Great Inflation, depression, or a normal economy for our future.
Editor's Notes
As of 2008, Fannie Mae and Freddie Mac had purchased about 80% of all new home mortgages in the U.S.By June 30th, 2008, they held a combined $1.5 trillion in mortgages and mortgage-backed securities.
On July 30, 2008, the Federal Housing Finance Agency (FHFA) was created by the Housing and Economic Recovery Act of 2008 to regulate Fannie Mae and Freddie Mac.The Economic Recovery Act also gives temporary permission for the Treasury to purchase an unlimited amount of debt or equity securities from the GSEs.On September 7, 2008, the FHFA became a conservator for Fannie Mae and Freddie Mac.The government has also agreed to provide financing to Fannie Mae and Freddie Mac through the purchase of preferred stock and mortgage-backed securities and MBS-collateralized short-term loans.
