11th District Cost-Of-Fund- A published data series based on the average yield paid by saving and loan associations on the funds they used to make mortgage loans.
(Explanation) The Federal Home Loan Bank of San Francisco (the 11th District)
Interest rate is relatively stable as a deposit is made the interest rate are paid determined the time of the deposit.
Monetary Policy -Governmental regulation of the amount of money in circulation through such institutions as the Federal Reserve Board
(Explanation) Is a tool that the government uses to influence their economy and by controlling to amount of money on the market.
Seasoned loan – A loan on which several payments have been collected.
(Explanation) If the seller accepts a second mortgage on the property. After he collects 12 months of payments, the loan is considered seasoned loan, and it can be more easily sold to a second investor.
Federal Deposit Insurance Corporation (FDIC) – A public corporation established 1933; insures up to $1000, 000 for each depositor in most Commercial Banks and savings and loan associations. Has own reserves and can borrow from the U.S. Treasury.
(Explanation) If the Bank cannot pay the depositor who wants to withdraw their money. The FDIC will pay the amount they whish for, and up to $100,000.
By Jimmy Bustamante & Davina Jackson
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