Definitions and explainations of mortgage terminology.
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Mortgage Glossary
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Freddie Mac - A nickname for the Federal Home Loan Mortgage Corporation (FHLMC). They are a federally chartered corporation that purchases residential mortgages, then sells and insures securities, called Mortgage-Backed Securities (MBS), based on those mortgages to investors. Loans that fall within Freddie Mac's underwriting guidelines, and therefore may be bought and securitized by Freddie Mac, are called conforming loans.
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Mortgage Glossary
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Good Faith Estimate (GFE) - A written estimate provided by the lender of the closing costs a borrower is likely to pay at settlement. This estimate must be provided to all loan applicants within three business days after a loan application is received. |
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Mortgage Glossary
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The two major Government Sponsored Entities (GSE) are Fannie Mae (FNMA) and Freddie Mac (FHLMC). These two federally chartered corporations purchase mortgages that conform to thier underwriting guidelines and then create and sell securities called Mortgage Backed Securities to investors in the financial markets. By securitizing mortgages in this way, the GSEs provide liquidity to mortgage lenders, making more funds available for mortgages at an overall lower cost.
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Mortgage Glossary
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Hazard Insurance - Insurance to protect the homeowner and the lender against physical damage to a property from fire, wind, vandalism, and certain other natural causes. Mortgage lenders often require the borrower to carry an amount of hazard insurance on the property that is at least equal to the amount of the loan amount. More commonly known as Homeowner's Insurance.
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Mortgage Glossary
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The HUD-1 is the government prescribed form used for preparing your closing, or settlement statement.
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Mortgage Glossary 
