|Freddie Mac (Federal Home Loan Mortgage Corporation)|
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Definition of Freddie Mac (Federal Home Loan Mortgage Corporation)
Freddie Mac (Federal Home Loan Mortgage Corporation)
A Congressionally chartered corporation that
ABM (automated banking machine)
A bank machine, sometimes referred to as an automated teller machine (ATM).
Alternative mortgage instruments
Variations of mortgage instruments such as adjustable-rate and variablerate
Articles of incorporation
Legal document establishing a corporation and its structure and purpose.
A loan in which two companies in separate countries borrow each other's currency for a
A short term loan to cover the immediate cash requirements until permanent financing is received.
Broker loan rate
Related: Call money rate.
Builder buydown loan
A mortgage loan on newly developed property that the builder subsidizes during the
A bank term loan that calls for no amortization.
Canadian Deposit Insurance Corporation
Better known as CDIC, this is an organization which insures qualifying deposits and GICs at savings institutions, mainly banks and trust companys, which belong to the CDIC for amounts up to $60,000 and for terms of up to five years. Many types of deposits are not insured, such as mortgage-backed deposits, annuities of duration of more than five years, and mutual funds.
The school of macroeconomic thought prior to the rise of Keynesianism.
mortgage against which no additional debt may be issued.
Collateralized mortgage obligation (CMO)
A security backed by a pool of pass-throughs , structured so that
Commercial Business Loan (Credit Insurance)
An agreement between a creditor and a borrower, where the creditor has loaned an amount to the borrower for business purposes.
A loan made on real estate collateral, other than a residential property, in which a mortgage is given to secure payment of principal and interest.
Controlled foreign corporation (CFC)
A foreign corporation whose voting stock is more than 50% owned
A loan based on the credit of the borrower and on the collateral for the mortgage.
A legal "person" that is separate and distinct from its owners. A corporation is allowed to own
A legal entity, organized under state laws, whose investors purchase
Business owned by stockholders who are not personally
Overnight, collateralized loan made to a dealer financing his position by borrowing from a
A loan which must be repaid in full on demand.
Domestic International Sales Corporation (DISC)
A U.S. corporation that receives a tax incentive for
Specialized banking institutions, authorized and chartered by the federal Reserve Board
Electronic Federal Tax Payment Systems (EFTPS)
An electronic funds transfer system used by businesses to remit taxes to the government.
Given the after-tax stream associated with a lease, the maximum amount of conventional
Farm Improvement and Marketing Cooperatives Loans Act
Federal agency securities
Securities issued by corporations and agencies created by the U.S. government,
Federal credit agencies
Agencies of the federal government set up to supply credit to various classes of
Federal Deposit Insurance Corporation (FDIC)
A federal institution that insures bank deposits.
Federal Employer Identification Number
A unique identification number issued
Federal Financing Bank
A federal institution that lends to a wide array of federal credit agencies funds it
Non-interest bearing deposits held in reserve for depository institutions at their district federal
Federal funds market
The market where banks can borrow or lend reserves, allowing banks temporarily
Federal funds rate
This is the interest rate that banks with excess reserves at a federal Reserve district bank
Federal Funds Rate
The interest rate at which banks lend deposits at the federal Reserve to one another overnight.
Federal Home Loan Banks
The institutions that regulate and lend to savings and loan associations. The
Federal Insurance Contributions Act of 1935 (FICA)
A federal Act authorizing the government to collect Social Security and Medicare payroll taxes.
Federal Open Market Committee (FOMC)
Fed committee that makes decisions about open-market operations.
Federal Reserve Banks
The twelve district banks in the federal Reserve System.
Federal Reserve Board
Board of Governors of the federal Reserve System.
Federal Reserve System
The central bank of the U.S., established in 1913, and governed by the federal
Federal Reserve System
The central banking authority responsible for monetary policy in the United States.
Federal Reserve (the Fed)
The central bank in the United States, responsible for setting interest rates.
Federal Unemployment Tax Act (FUTA)
A federal Act requiring employers to pay a tax on the wages paid to their employees, which is then used to create a
Federally related institutions
Arms of the federal government that are exempt from SEC registration and
A loan on which the rate paid by the borrower is fixed for the life of the loan.
Fixed Rate Loan
loan for a fixed period of time with a fixed interest rate for the life of the loan.
Foreign Sales Corporation (FSC)
A special type of corporation created by the Tax Reform Act of 1984 that
GEMs (growing-equity mortgages)
mortgages in which annual increases in monthly payments are used to
GMCs (guaranteed mortgage certificates)
First issued by freddie mac in 1975, GMCs, like PCs, represent
Government National Mortgage Association (Ginnie Mae)
A wholly owned U.S. government corporation
Graduated-payment mortgages (GPMs)
A type of stepped-payment loan in which the borrower's payments
Sale of some shares of stock to get cash that would be similar to receiving a cash dividend.
Idea that as long as individuals borrow (or lend) on the same terms as the firm, they can
Process by which a company receives its Articles of Incorporation allowing it to operate as a corporation.
An insured mortgage protects only the mortgage lender in case you do not make your mortgage payments. This coverage is provided by CMHC [Canada mortgage and Housing corporation] and is required if a person has a high-ratio mortgage. [A mortgage is high-ratio if the amount borrowed is more than 75% of the purchase price or appraised value, whichever is less.]
loan made by one unit of a corporation to another unit of the same corporation.
A secured short-term loan to purchase inventory. The three basic forms are a blanket
loans of $1 billion or more. Or, loans that exceed the statutory size limit eligible for purchase or
Loan amortization schedule
The schedule for repaying the interest and principal on a loan.
Borrowed funds having a fixed interest rate.
Express stipulations included in loan agreements that are designed to monitor
Group of banks sharing a loan. See: syndicate.
The amount a policyholder may borrow against a whole life insurance policy at the interest rate
Amounts that have been loaned to the company and that it still owes.
The weighted-average term to maturity of the cash flows from the bond, where the
A widely used measure of price sensitivity to yield
The cost of machinery owned by the company.
The study of the determination of economic aggregates such as total output and the price level.
MACRS (Modified Accelerated Cost Recovery System)
A depreciation method created by the IRS under the Tax Reform Act of 1986. Companies must use it to depreciate all plant and equipment assets installed after December 31, 1986 (for tax purposes).
Modified Accelerated Cost Recovery System (MACRS)
Depreciation method that allows higher tax deductions in early years and lower deductions later.
A loan secured by the collateral of some specified real estate property which obliges the borrower
Debt instrument by which the borrower (mortgagor) gives the lender (mortgagee) a lien on property as security for the repayment of a loan.
Securities backed by a pool of mortgage loans.
Mortgage-Backed Securities Clearing Corporation
A wholly owned subsidiary of the Midwest Stock
A bond in which the issuer has granted the bondholders a lien against the pledged assets.
Mortgage (Credit Insurance)
An agreement between a creditor and a borrower, where the creditor has loaned an amount to the borrower for purposes of purchasing a loan secured by a home.
A modification of standard duration to account for the impact on duration of MBSs of
Commonly sold in the form of reducing term life insurance by lending institutions, this is life insurance with a death benefit reducing to zero over a specific period of time, usually 20 to 25 years. In most instances, the cost of coverage remains level, while the death benefit continues to decline. Re-stated, the cost of this kind of insurance is actually increasing since less death benefit is paid as the outstanding mortgage balance decreases while the cost remains the same. Lending institutions are the most popular sources for this kind of coverage because it is usually sold during the purchase of a new mortgage. The untrained institution mortgage sales person often gives the impression that this is the only place mortgage insurance can be purchased but it is more efficiently purchased at a lower cost and with more flexibility, directly from traditional life insurance companies. No matter where it is purchased, the reducing term insurance death benefit reduces over a set period of years. Most consumers are up-sizing their residences, not down-sizing, so it is likely that more coverage is required as years pass, rather than less coverage.
Mortgage Life insurance (Credit Insurance)
Decreasing term life insurance that provides a death benefit amount corresponding to the decreasing amount owed on a mortgage.
Mortgage pass-through security
Also called a passthrough, a security created when one or more mortgage
The period from the taking of applications from prospective mortgage borrowers to the
The risk associated with taking applications from prospective mortgage borrowers
The interest rate on a mortgage loan.
The lender of a loan secured by property.
The borrower of a loan secured by property.
Give the borrower the possibility of drawing a loan in different currencies.
loans usually represented by conventional mortgages on multi-family rental apartments.
A firm that operates in more than one country.
Negative Loan Covenants
loan covenants designed to limit a corporate borrower's behavior
mortgage against which additional debts may be issued. Related: closed-end mortgage.
A loan advanced under an operating line of credit.
A process whereby two companies in different countries borrow each other's currency for a
Pension Benefit Guaranty Corporation (PBGC)
A federal agency that insures the vested benefits of
A lump sum that you borrow from a financial institution for a specified period of time. To repay the loan, you pay interest on the entire lump sum, and make payments on a scheduled basis.
Positive Loan Covenants
loan covenants expressing minimum and maximum financial measures
A type of corporation permitted under the U.S. tax code whereby a branch operation
Preferred Stock Stock that has a claim on assets and dividends of a corporation that are prior
to that of common stock. Preferred stock typically does not carry the right to vote.
Private Export Funding Corporation (PEFCO)
Company that mobilizes private capital for financing the
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