Abstract
In the present article author explores characteristics and structure of the secondary mortgage market of the United States of America. The study begins with the history of the development of the market. Thus, the author notes that the practice of issuing securities backed by mortgage assets stared with the work of Ginnie Mae. Such refinancing helped to provide Fannie Mae, and then began the development of the turnover of securities, backed by pools of mortgages. Further the author considers: 1. the main features of the securities issued by mortgage institutions; 2. Fannie Mae: the main types of equity securities (debt instruments); 3. Fannie Mae: the purchase of mortgage loans on the free market system; 4. Tandem program; 5. Conduits: non-governmental mortgage organizations. In conclusion, the author infers that the experience of the USA arouses the particular interest. Since 1970, the United States achieved significant results and laid the foundation for the economic development of the USA.
Highlights
United States is about "half the size of Russia; about three-tenths the size of Africa; about half the size of South America; slightly larger than China; more than twice the size of the European Union
The author notes that the practice of issuing securities backed by mortgage assets stared with the work of "Ginnie Mae"
An important role is played by the secondary mortgage market
Summary
United States is about "half the size of Russia; about three-tenths the size of Africa; about half the size of South America (or slightly larger than Brazil); slightly larger than China; more than twice the size of the European Union. At the initial stage of formation of the secondary mortgage market, banks and organizations regularly faced the lack of liquidity for lending for such long-term period, as required by the mortgage. This situation has given rise to the need to refinance loans for housing. Such refinancing was able to provide with the founded by federal government agency "Fannie Mae" It solves this problem by buying debt from banks and savings and loan associations. The turnover of securities, backed by a pool of mortgages, began to develop These tools of the secondary mortgage market have caused the greatest interest among long-term investors. Securities market began to suffer from ever-increasing influence from the mortgage instruments
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