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.

Monday, January 5, 2009

The Fed is starting to buy mortgage titles

The U.S. Federal Reserve (Fed) announced Monday have started to buy back shares mortgage-backed agencies with mortgage refinancing semi-public U.S. crossing a new stage in its support for the economy.

These acquisitions of securities issued by Fannie Mae, Freddie Mac and Ginnie Mae are conducted for the Fed by private asset managers selected by the central bank, said the Federal Reserve Bank of New York on its website .

The New York Fed is the traditional intermediary between the U.S. and markets.

Announced in November, the plan of redemption of securities backed by real estate assets issued by Fannie Mae, Freddie Mac and Ginnie Mae, provided that the Fed spends up to $ 500 billion.

At its monetary policy meeting in December, the Fed has officially committed to the path of "quantitative monetary easing" policy of massive increase in liquidity, and said it might have to exceed the amount of $ 500 billion, depending on its assessment of economic conditions.