What is a central bank?
A central bank is a national bank that provides financial and banking services for it’s country’s government and commercial banking system, as well as issuing paper money and coins and implementing the government’s monetary policy. The responsibilities of a country’s central bank are to keep inflation stabilized, issue money in the form of coins and […]
What is the Federal Reserve?
The Federal Reserve or simply the Fed is the central bank of the United States. It is the most powerful institution in the United States and one of the most powerful institutions in the world. It performs five functions: (1) it handles the nation’s monetary policy to promote maximum employment, stable prices, and the moderation […]
What is the NMLS?
The NMLS or Nationwide Multi-State Licensing System and Registry is a centralized database used by mortgage regulatory agencies to maintain and track state licensing programs. It began operating in 2008 after Congress passed the SAFE ACT or Secure & Fair Enforcement for Mortgage Licensing Act. The NMLS is in place primarily to protect borrowers so […]
What is Fannie Mae or the Federal National Mortgage Association (FNMA)?
The Federal National Mortgage Association (FNMA) or more commonly known as Fannie Mae is a United States GSE, Government sponsored entity. Founded in 1938 during the Great Depression as part of President Roosevelt‘s New Deal, it’s purpose was to expand the secondary mortgage market by securitizing mortgages in the form of MBSs or mortgage backed […]
What is Freddie Mac or the Federal Home Loan Mortgage Corporation (FHLMC)?
The Federal Home Loan Mortgage Corporation (FHLMC) or more commonly known as Freddie Mac is a United States GSE, Government sponsored entity. Founded in 1970 and created out of the Emergency Home Finance Act of 1970, Freddie Mac essentially buys mortgages, packages them together in what are known as mortgage backed securities or MBSs and […]
What is Ginnie Mae or the Government National Mortgage Association (GNMA)?
Ginnie Mae or the Government National Mortgage Association (GNMA) is a government owned corporation within the Department of Housing and Urban Development. Ginnie Mae secures the following types of loans: FHA, VA, USDA and mortgages for native Americans. Founded in 1968, Ginnie Mae was created to increase afforable housing by guaranteeing government loans, in essense […]
What is the BIS or Bank for International Settlements?
The BIS or the Bank for International Settlements is essentially the international financial institution that offers services to many nation’s central banks. Located in Basel, Switzerland, it is owned by 63 different country’s central banks and is essentially a central bank for central banks. The BIS has quite an interesting past. It was originally created […]
What is the IMF for International Monetary Fund?
The IMF or International Monetary Fund is a major world organization and part of the United Nations and is headquartered in Washington, DC. It consists of 190 countries from around the world. It was formed in 1944 at the famous Bretton Woods Conference along with it’s complimentary institution, the World Bank. Both organizations were implemented […]
What is the World Bank?
The World Bank was conceived in 1944 along with the IMF at the Bretton Woods Conference held in New Hampshire. It was created in 1945 and is headquartered in Washington, D.C. It is actually the collective name for five international organizations: 1) the IBRD International Bank for Reconstruction and Development 2) IDA International Development Association […]