【正文】 rvicing fees). ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 24 11 The Roles Played by Financial Institutions In the Mortgage Market ? Savings and loan associations (Samp。Ls) are predominantly local lenders. They often service the mortgage loans they made. ? Commercial banks rank first as lenders for the purchase of homes, condominiums, and apartments, and in the mercial mortgage sector. ? Savings banks invest in both governmentguaranteed and conventional mortgage loans. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 24 12 The Roles Played by Financial Institutions In the Mortgage Market ? Life insurance panies make substantial investments in mercial as well as residential mortgage properties, both nationally and internationally. ? Mortgage banking houses act as a channel through which builders or contractors in need of longterm funds can find permanent mortgage financing. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 24 13 Government Activity ? The Great Depression generated massive, unprecedented unemployment, such that there were thousands of foreclosures, property values fell, and many mortgage lenders faced liquidity crises. ? So, the . federal government had to move in to tackle the mortgage market’s problems, through government guarantees and the development of a secondary market. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 24 14 Government Activity ? The major milestones include: ? 1932: Federal Home Loan Bank System ? 1934: National Housing Act, Federal Housing Administration ? 1938: Federal National Mortgage Association (Fannie Mae) ?1944: Servicemen’s Readjustment Act, Veterans Administration ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 24 15 Government Activity ? 1968: Government National Mortgage Association (Ginnie Mae) (Its passthroughs are popular with investors as safe, readily marketable securities with attractive rates of return.) ? 1970: Federal Home Loan Mortgage Corporation (Freddie Mac) (Its mortgagebacked securities include mortgage participation certificates (PCs), guaranteed mortgage certificates (GMCs), collateralized mortgage obligations (CMOs), and real estate mortgage investment conduits (REMICs).) ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 24 16 Innovations in Mortgage Instruments ? The problems created by fixedrate mortgages (FRMs) led to the development of variablerate mortgages (VRMs) and adjustable mortgage instruments (AMIs). ? Volatile interest rates also led to the development of convertible mortgage instruments (CMIs) and balloon loans. ? Reverseannuity mortgages (RAMs) have also been developed to help older families. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 24 17 Innovations in Mortgage Instruments ? Mortgage lockins protect borrowers from an increase in loan rates during the housebuying process, while loan modification agreements aid troubled borrowers in avoiding disclosure. ? In recent years, as market interest rates fell, many homeowners have chosen to refinance their home mortgages. Some have also opted to take home equity loans. ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 24 18 Money and Capital Markets in Cyberspace ? More information about the residential mortgage market can be found at: ? ? ? ? ? ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 24 19 Chapter Review ? Introduction ? Recent Trends in New Home Prices and the Terms of Mortgage Loans ? The Structure of the Mortgage Market ? Volume of Mortgage Loans ? Residential versus Nonresidential Mortgage Loans ? Mortgage Lending Institutions ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 24 20 Chapter Review ? The Roles Played by Financial Institutions in the Mortgage Market ? Savings and Loan Associations ? Commercial Banks ? Life Insurance Companies ? Savings Banks ? Mortgage Bankers ? 2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 24 21 Chapter Review ? Government Activity ? The Impact of the Great Depression on G