Abstract
Through the FMS auctions, FNMA issues optional forward commitments (four months) for the purchase of single-family mortgage loans from originating lenders. Basically, lenders offer to sell mortgages to FNMA at specified yields. FNMA then evaluates these offers, determines the amount of mortgages it will purchase (i.e., the yields it will accept), and then issues forward commitments to the successful bidders.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: The Journal of Financial and Quantitative Analysis
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
