• The making of mortgage loans.
| ||Embedded terms in definition|
| ||Referenced Terms|
| ||Fha prepayment experience: The percentage of loans in a pool of mortgages outstanding at the Origination anniversary, based on annual statistical historic survival rates for FHA-insured mortgages.|
| ||Investment banker: A term for investment dealers when performing the underwriting function.A firm that engages in the Origination, underwriting, and distribution of new issues.An institution in the business of raising capital for corporations and municipalities. An investment banker may not accept deposits or make commercial loans. See also: Commercial Bank; Investment Bank.|
| ||Pool: Is a term used in several ways. From a futures trading perspective, it refers to the amount or size of unfilled orders. This inability to fill orders can occur at a limit up or limit down-market condition. For mortgages or other loans, it refers to the individual collateral underlying the security. For securitized mortgages, it can refer information such as the issuer's name, year of Origination, geographic distribution, WAC, WAM and the maturity date.|
| ||Psa prepayment: A prepayment model based on an assumed rate of prepayment each month of the then unpaid principal balance of a pool of mortgages. PSA is used primarily to derive an implied prepayment speed of new production loans, a 100% PSA assumes a prepayment rate of 2% per month in the first month following the date of issue, increasing at 2% per month thereafter until the 30th month. Thereafter, 100% PSA is the same as 6% CPR.Is the model or the speed for a mortgage backed security. A 100 percent PSA speed assumes a prepayment rate of .2 percent starting with the first after Origination and continuing until the thirtieth month. Thereafter the model assumes a prepayment rate of 6 percent.|
| ||Spot lending: The Origination of mortgages by processing applications taken directly from prospective borrowers.|
| ||Related Terms|
| ||Origination fee|
Managing Your Expenses on a Fixed or Reduced Income: Once you've retired, you finally have the opportunity to work at your dream job - keeping yourself happy. It's your chance to visit places you've always wanted to see, take up a new hobby and spend more time with your family and friends. But to be successful at this new position, you've got to make the most of your income and investments. Here are suggestions. More...
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