Mortgage, loan and property. What is a mortgage?

A mortgage is putting a property as a guarantee to a lender as a security for a mortgage loan.

While a mortgage in itself is not a liability or a dept, it is evidence of a debt. It is a transfer of an interest in property, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the property when the terms of the mortgage have been satisfied or concluded.

In other words, the mortgage is a guarantee for the loan that the lender makes to the borrower. In all but a very few states, a mortgage creates a lien on the title to the mortgaged property.

Wednesday, March 11, 2009

A temporary CEO at Freddie Mac

The U.S. mortgage refinancing Freddie Mac (FRE), under the supervision of the federal state since fall (or the fall, or it’s fall, you choose!), anyway, Freddie Mac announced Wednesday that the chairman of its Board of Directors John Koskinen would temporarily fill the post of director general.

The Director General David Moffett announced its March 2 decision to leave his post, his resignation is effective this Friday. John Koskinen had indicated that he would appoint a chief on an interim order.

"The board of Freddie Mac is working in conjunction with the (new regulator overseeing the mortgage refinancing) FHFA to appoint a permanent executive director, after which Mr. Koskinen is expected to resume his original post, the agency said in a release.

Freddie Mac, which has already received 13.8 billion U.S. dollars of federal aid, said in January it was about to claim between 30 and 35 billion to the Treasury to return to a net positive.

Unlike its counterpart Fannie Mae, which, although generally seen as less bad shape, unveiled a colossal loss of 58.7 billion U.S. in 2008, Freddie Mac has provided no assessment on the amount of expected losses in the fourth quarter, or advanced for their date of publication.

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