chapter 12 residential mortgage types and borrower decisions overview role of the secondary market conventional mortgages fha va home equity loan other insurance choiceamount leverage size refinancingdefault primary where loans are created originated retail or street players bankers brokers banks thrifts mortgagemarket existing resold wholesale among lenders dominant securitization government sponsored enterprises gses fannie mae freddie mac national association gnma ginnie securitizers mortgageloans oldest form any standard not insured by guaranteed veterans affairs revolutionized in 1940s private new revolution language conforming meets requirements for purchase note appraisal limit currently 322 700 interest rate advantage due to liquidity at least 25 nonconforming does meet gse some respect jumbo terms mortgageinsurance pmi protects lender against losses
