1. Chapter 13 Sources of Financing ____________________________

2. Financing Primary Market – where lenders originate loans. Secondary Market – provides a way for lenders to sell a loan.

3. Primary Loan Sources Savings and Loan Associations Commercial Banks Life Insurance Companies Mortgage Companies Mortgage Brokers Computerized Loan Origination (CLO) Municipal Bonds

4. Secondary Loan Sources FNMA GNMA FHLMC Farmer Mac

5. The Secondary Mortgage Market Mortgage Lenders Borrowers Financial Intermediaries Mortgage Investors Primary Market Secondary Market

6. Mortgage Loan Delivery Systems

7. Usury State legislation that imposes an interest rate ceiling on loans. U.S. Congress passed legislation that exempts from state usury limits most first lien home loans made by institutional lenders.

8. Other Financing Conditions Due-on-Sale – call clause. Prepayment - penalty for the right to repay a loan early.