A residential mortgage loan eligible for purchase by FNMA (Fannie Mae) or FHLMC (Freddie Mac). These loans typically offer lower interest rates and more favorable terms compared to nonconforming mortgage loans.
A quasi-governmental organization that is privately owned but retains certain privileges as it was created by the government. Examples include the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC).
A Government-Sponsored Enterprise (GSE) is a financial services corporation created by the United States Congress. Their purpose is to enhance the flow of credit to specific sectors of the American economy and to make those segments more efficient and transparent. Two prominent GSEs are the Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, and the Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac.
A nonconforming loan is a type of home mortgage loan that does not meet the standards of, or is too large to be purchased by, the Federal National Mortgage Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC). Due to this, the interest rates on these loans are typically higher.
The secondary mortgage market is a market for buying and selling mortgages that have already been issued or originated, providing significant liquidity to the mortgage market.
