MORTGAGE SYSTEM - US

1. Regional lending

2. 20,000 lenders – Banks, S&Ls,
mortgage banks

3. Segmented lending process

4. Amortization typically 15 & 30 years

5. Interest rate fixed for life of mortgage
or variable

6. Interest deductibility

7. Capital gains taxable

8. MBS major source of funds

9. FHA targets low income and avoids
competition

10. FHA covers 10% of new
residential mortgage loan