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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
Related Terms:ABM (automated banking machine)A bank machine, sometimes referred to as an automated teller machine (ATM). Alternative mortgage instrumentsVariations of mortgage instruments such as adjustable-rate and variablerate Articles of incorporationLegal document establishing a corporation and its structure and purpose. Back-to-back loanA loan in which two companies in separate countries borrow each other's currency for a Bridge LoanA short term loan to cover the immediate cash requirements until permanent financing is received. Broker loan rateRelated: Call money rate. Builder buydown loanA mortgage loan on newly developed property that the builder subsidizes during the ![]() Bullet loanA bank term loan that calls for no amortization. Canadian Deposit Insurance CorporationBetter 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. Classical MacroeconomicsThe school of macroeconomic thought prior to the rise of Keynesianism. Closed-end mortgagemortgage 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. Commercial MortgageA 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 Conventional mortgageA loan based on the credit of the borrower and on the collateral for the mortgage. ![]() CorporationA legal "person" that is separate and distinct from its owners. A corporation is allowed to own CorporationA legal entity, organized under state laws, whose investors purchase corporationBusiness owned by stockholders who are not personally Dealer loanOvernight, collateralized loan made to a dealer financing his position by borrowing from a Demand LoanA loan which must be repaid in full on demand. Domestic International Sales Corporation (DISC)A U.S. corporation that receives a tax incentive for Edge corporationsSpecialized 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. Equivalent loanGiven the after-tax stream associated with a lease, the maximum amount of conventional Farm Improvement and Marketing Cooperatives Loans ActSee here Federal agency securitiesSecurities issued by corporations and agencies created by the U.S. government, Federal credit agenciesAgencies 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 NumberA unique identification number issued Federal Financing BankA federal institution that lends to a wide array of federal credit agencies funds it Federal fundsNon-interest bearing deposits held in reserve for depository institutions at their district federal Federal funds marketThe market where banks can borrow or lend reserves, allowing banks temporarily Federal funds rateThis is the interest rate that banks with excess reserves at a federal Reserve district bank Federal Funds RateThe interest rate at which banks lend deposits at the federal Reserve to one another overnight. Federal Home Loan BanksThe 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 BanksThe twelve district banks in the federal Reserve System. Federal Reserve BoardBoard of Governors of the federal Reserve System. Federal Reserve SystemThe central bank of the U.S., established in 1913, and governed by the federal Federal Reserve SystemThe 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 institutionsArms of the federal government that are exempt from SEC registration and Fixed-rate loanA loan on which the rate paid by the borrower is fixed for the life of the loan. Fixed Rate Loanloan 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 Homemade dividendSale of some shares of stock to get cash that would be similar to receiving a cash dividend. Homemade leverageIdea that as long as individuals borrow (or lend) on the same terms as the firm, they can IncorporationProcess by which a company receives its Articles of Incorporation allowing it to operate as a corporation. Insured MortgageAn 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.] Intercompany loanloan made by one unit of a corporation to another unit of the same corporation. Inventory loanA secured short-term loan to purchase inventory. The three basic forms are a blanket Jumbo loanloans of $1 billion or more. Or, loans that exceed the statutory size limit eligible for purchase or Loan amortization scheduleThe schedule for repaying the interest and principal on a loan. Loan CapitalBorrowed funds having a fixed interest rate. Loan CovenantsExpress stipulations included in loan agreements that are designed to monitor Loan syndicationGroup of banks sharing a loan. See: syndicate. Loan valueThe amount a policyholder may borrow against a whole life insurance policy at the interest rate Loans payableAmounts that have been loaned to the company and that it still owes. Macaulay durationThe weighted-average term to maturity of the cash flows from the bond, where the Macaulay durationA widely used measure of price sensitivity to yield MachineryThe cost of machinery owned by the company. MacroeconomicsThe 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. MortgageA loan secured by the collateral of some specified real estate property which obliges the borrower MortgageDebt instrument by which the borrower (mortgagor) gives the lender (mortgagee) a lien on property as security for the repayment of a loan. Mortgage-backed securitiesSecurities backed by a pool of mortgage loans. Mortgage-Backed Securities Clearing CorporationA wholly owned subsidiary of the Midwest Stock Mortgage bondA 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. Mortgage durationA modification of standard duration to account for the impact on duration of MBSs of Mortgage InsuranceCommonly 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 securityAlso called a passthrough, a security created when one or more mortgage Mortgage pipelineThe period from the taking of applications from prospective mortgage borrowers to the Mortgage-pipeline riskThe risk associated with taking applications from prospective mortgage borrowers Mortgage rateThe interest rate on a mortgage loan. MortgageeThe lender of a loan secured by property. MortgagerThe borrower of a loan secured by property. Multicurrency loansGive the borrower the possibility of drawing a loan in different currencies. Multifamily loansloans usually represented by conventional mortgages on multi-family rental apartments. Multinational corporationA firm that operates in more than one country. Negative Loan Covenantsloan covenants designed to limit a corporate borrower's behavior Open-end mortgagemortgage against which additional debts may be issued. Related: closed-end mortgage. Operating LoanA loan advanced under an operating line of credit. Parallel loanA 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 personal loanA 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 Covenantsloan covenants expressing minimum and maximum financial measures Possessions corporationA 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 priorto 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 Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |