Mortgage industry of the United States

 This individual mortgage industry of the United States is a major financial sector. The us government created several programs, or government subsidized entities, to foster mortgage loan lending, construction and encourage home ownership. These programs include the Government Domestic Mortgage Association (known as Ginnie Mae), the Government National Mortgage Association (known as Fannie Mae) and the Federal Home Bank loan Mortgage Corporation (known as Freddie Mac).

The subprime mortgage crisis was one of the first indications of the 2007-2010 economic crisis, characterized by a climb in subprime mortgage delinquencies and foreclosures, and the resulting decline of investments backing said mortgages. The earlier savings and loan crisis of the eighties and 1990s and the national mortgage crisis of the 1930s also came into being mostly from unsound mortgage loan lending. The mortgage problems has led to a rise in foreclosures, leading to the 2010 Unified States foreclosure crisis.

Mortgage loan lending is a major sector finance in the United States, and lots of the guidelines that loans must meet are suited to gratify investors and mortgage loan insurers. Mortgages are commercial paper and can be conveyed and assigned readily to other holders. In the U. S., the us government created several programs, or government paid entities, to foster home loan lending, construction and encourage home ownership. These programs include the Government Domestic Mortgage Association (known as Ginnie Mae), the Federal government National Mortgage Association (known as Fannie Mae) and the Federal Home Bank loan Mortgage Corporation (known as Freddie Mac). These programs work by offering a guarantee on the home loan payments of certain contouring loans. These loans are then securitized and granted at a slightly lower interest to investors, and are known as mortgage-backed securities (MBS). After securitization these are generally sometimes called "agency paper" or "agency bonds". Regardless of whether a loan is conforming will depend on the size and set of rules which are implemented in an automated underwriting system. Non-conforming home loans which are unable to be sold to Fannie or Freddie are either "jumbo" or "subprime", and can even be packaged into mortgage-backed securities. Some companies, called correspondent lenders, sell any almost all of their closed lending options to these investors, taking some risks for giving them. They often offer niche loans at higher prices that the buyer does not want to form.