[Answer] 46. What is the source of money for an FHA loan?

Answer: A qualified lending institution
46. What is the source of money for an FHA loan?

The Federal National Mortgage Association (FNMA) commonly known as Fannie Mae is a United States government-sponsored enterprise (GSE) and since 1968 a publicly traded company.Founded in 1938 during the Great Depression as part of the New Deal the corporation’s purpose is to expand the secondary mortgage market by securitizing mortgage loans in the form of mortgage-backed securities …

A reverse mortgage is a mortgage loan usually secured by a residential property that enables the borrower to access the unencumbered value of the property. The loans are typically promoted to older homeowners and typically do not require monthly mortgage payments. Borrowers are still responsible for property taxes and homeowner’s insurance.Reverse mortgages allow elders to access the home …

A mortgage-backed security (MBS) is a type of asset-backed security (an ‘instrument’) which is secured by a mortgage or collection of mortgages. The mortgages are aggregated and sold to a group of individuals (a government agency or investment bank) that securitizes or packages the loans together into a security that investors can buy.Bonds securitizing mortgages are usually treated as a …

A collateralized debt obligation (CDO) is a type of structured asset-backed security (ABS). Originally developed as instruments for the corporate debt markets after 2002 CDOs became vehicles for refinancing mortgage-backed securities (MBS). Like other private label securities backed by assets a CDO can be thought of as a promise to pay investors in a prescribed sequence based on the cash …

The Federal Home Loan Mortgage Corporation (FHLMC) known as Freddie Mac is a public government-sponsored enterprise (GSE) headquartered in Tysons Corner Virginia. Freddie Mac is ranked No. 41 on the 2020 Fortune 500 list of the largest United States corporations by total revenue and has $2….

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