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Residential Mortgage Banking Basics.

Easy to read and understand, two recently published booklets available through the Mortgage Bankers Association of America overview the mortgage banking industry.

Residential Mortgage Banking Basics and Secondary Mortgage Market Basics are targeted for readers in search of a general, yet concise, overview of mortgage banking. The booklets are also useful as quick reference guides when a reader is in need of a synopsis of a particular mortgage banking activity.

Residential Mortgage Banking Basics moves smoothly from the general to the more specific. The introduction, in particular, analyzes the role that mortgage banking fulfills in residential mortgage financing. The booklet offers a close look at the mortgage banking industry's responsibility in maintaining an even geographic distribution of available mortgage money for housing development. Also discussed are the major mortgage banking functions of secondary marketing, origination, processing, underwriting, closing, warehousing, shipping and delivery and servicing.

As a supplement to the overview of the mortgage process itself, Mortgage Banking Basics includes pertinent discussions regarding where mortgage banking profits come from, the types of mortgage bankers in the industry, mortgage loan types and the main participants involved in the mortgage process. Each of these discussions includes definitions of key terms and processes that are essential to gaining a basic understanding of mortgage banking.

The basics booklet guides the reader with a step-by-step overview of each major phase of the mortgage banking process. A chapter devoted to secondary marketing emphasizes the critical participation of secondary marketing throughout the entire loan origination process. Sections on loan closing, warehousing and shipping and delivery contain valuable information for the inexperienced reader, primarily because these functions are often given little attention in most mortgage banking literature.

The essentials of good underwriting are reviewed along with the "Four Cs" of underwriting: collateral, capacity, character and capital. Chapters on origination, processing and loan administration give overviews of basic mortgage principles that are easy to understand.
COPYRIGHT 1991 Mortgage Bankers Association of America
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Author:Howell, Dick
Publication:Mortgage Banking
Article Type:Book Review
Date:Jul 1, 1991
Previous Article:Commercial Real Estate Workouts.
Next Article:Secondary Mortgage Market Basics.

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