|Strip mortgage participation certificate (strip PC)|
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Definition of Strip mortgage participation certificate (strip PC)
Strip mortgage participation certificate (strip PC)
Ownership interests in specified mortgages purchased
Variations of mortgage instruments such as adjustable-rate and variablerate
Also called a time deposit, this is a certificate issued by a bank or thrift that
A bank deposit that cannot be withdrawn for a specified period of time. See also term deposit.
mortgage against which no additional debt may be issued.
A security backed by a pool of pass-throughs , structured so that
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.
A loan based on the credit of the borrower and on the collateral for the mortgage.
certificates issued by a trust that was formed to purchase an asset and lease it
A Congressionally chartered corporation that
mortgages in which annual increases in monthly payments are used to
First issued by Freddie Mac in 1975, GMCs, like pcs, represent
A wholly owned U.S. government corporation
A type of stepped-payment loan in which the borrower's payments
Interest bearing investment with fixed rate and term.
A GIC is an investment that gives you a guaranteed rate of return over a fixed period of time, usually between 30 days and 5 years. GICs are available from banks, trust companies, and other financial institutions.
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.]
Interest-only strip (IO)
A security based solely on the interest payments form a pool of mortgages, Treasury
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.
See marginal propensity to consume.
Negotiated certificate of deposit
A large-denomination CD, generally $1MM or more, that can be sold but
mortgage against which additional debts may be issued. Related: closed-end mortgage.
Fee charged by a bank for taking part in providing a loan.
Fraction of the noninstitutionalized population 16 years of age and over that is in the labor force.
Project loan certificate (PLC)
A primary program of Ginnie Mae for securitizing FHA-insured and coinsured
RAMs (Reverse-annuity mortgages)
mortgages in which the bank makes a loan for an amount equal to a
REMIC (real estate mortgage investment conduit)
A pass-through tax entity that can hold mortgages
statistical process control (SPC)
the use of control techniques that are based on the theory that a process has natural variations in it over time, but uncommon variations
A document that identifies a stockholder’s ownership share in a corporation.
Variants of a straddle. A strip is two puts and one call on a stock, a strap is two calls and one put
Stripped mortgage-backed securities (SMBSs)
Securities that redistribute the cash flows from the
Wholesale mortgage banking
The purchasing of loans originated by others, with the servicing rights
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