This library provides market participants with standard forms and standard documents that promote transparency and efficiency in the marketplace. Mortgage securities are an interest in mortgages granted by financial institutions (savings and loans and commercial banks, commercial banks or mortgages) to finance the borrower`s acquisition of a home or other property. Mortgage securities are created when these loans are packaged or “bundled” by issuers or service providers for sale to investors. Because the underlying mortgages are repaid by the owners, investors receive interest and principal payments. The majority of mortgage securities are issued and/or guaranteed by a U.S. government agency, the Government National Mortgage Association (Ginnie Mae) or by state-subsidized companies, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Some private institutions, such as subsidiaries of investment banks, financial institutions and homeowners, also pack different types of mortgages and mortgage pools. The securities they issue are called “private” mortgage securities, unlike “agency” mortgage securities issued and/or guaranteed by Ginnie Mae, Fannie Mae or Freddie Mac. It is estimated that there are $8.17 trillion worth of mortgage securities outstanding.
To purchase digital or print investor guides, please visit: www.sifma.org/store. Municipal securities are bonds issued by states, cities, counties and other public authorities to raise funds for the construction of schools, highways, hospitals and sanitation systems, as well as many other projects for the benefit of general costs. Municipal securities are the main way to borrow money from the United States and local governments to finance their capital investment and cash flow needs. An important distinguishing feature of the municipal securities market is the exemption from federal income tax for most municipal loans.