Mortgage Backed Securities
FHLMC Pools (Fixed Rate & Adjustable Rate Mortgages)
FHLMC (Freddie Mac) is a government-sponsored enterprise (GSE) chartered by
Congress for the purpose of providing liquidity, stability and affordability
to the U. S. housing and mortgage markets by pooling and selling participation
certificates that are backed by mortgages. Pools are issued with maturities
of 5, 7, 10, 15, 20, 25, 30 and 40 years and dependent upon the prepayment
speeds of the underlying mortgages, can have average lives that range from .5
to 30 years.
FNMA Pools (Fixed Rate & Adjustable Rate Mortgages)
FNMA (Fannie Mae) is a government-sponsored enterprise (GSE) chartered by
Congress for the purpose of providing liquidity, stability and affordability
to the U. S. housing and mortgage markets by pooling and selling participation
certificates that are backed by mortgages that are insured by the Federal
Housing Administration (FHA) or guaranteed by the Department of Veterans
Affairs (VA). Pools are issued with maturities of 7, 10, 15, 20, 25, 30 and 40
years and dependent upon the prepayment speeds of the underlying mortgages, can
have average lives that range from .5 to 30 years.
GNMA Pools (Fixed Rate & Adjustable Rate Mortgages)
GNMA (Ginnie Mae) securities are the only Mortgage Backed Securities (MBS)
which carry the full faith and credit guarantee of the U. S. Government. Ginnie Mae
is a government-owned corporation that guarantees investors the timely payment
of principal and interest on MBS backed by federally insured or guaranteed
loans (insured by the Federal Housing Administration (FHA) or guaranteed by the
Department of Veterans Affairs (VA). Other guarantors or issuers of loans eligible
as collateral for Ginnie Mae MBS include the Department of Agriculture's Rural
Housing Service (RHS) and the Department of Housing and Urban Development's Office
of Public and Indian Housing (PIH). GNMA pools can have maturities of 15 and 30
years and dependent upon the prepayments speeds on the underlying mortgages, can
have average lives that range from 3 to 25 years.
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