The seasoned mortgage is a type of mortgage loan. In case of a seasoned mortgage the term period of the mortgage is minimum one year and the loan amount is usually paid back by the borrower within the specified time limit. With a seasoned mortgage it is taken for granted that the borrower is making his payments at the correct time.
In the United States the seasoned mortgages are provided by governmental agencies like Freddie Mac.
Benefits Offered by Seasoned Mortgages
The seasoned mortgage provides the lenders with a lot of benefits:
Extra methods of reconstructing the balance sheet assets are suggested. These suggestions are even more strategic. They also look after the problems that are related to loan-to-deposit or loan-to-share.
It provides a lot of choices of execution, which help to look after the varying requirements that are related to the borrower’s business.
It offers increased levels of liquidity.
It assures the highest possible levels of profitability. This is made possible by the loan providers by offering improved levels of management to the portfolio of the borrower.
Requirements for obtaining Seasoned Mortgages
There are certain requirements that need to be fulfilled by a borrower as well as lender in order to settle a seasoned mortgage. For a borrower it could mean the permission of purchasing it from an institutional lender like Freddie Mac.
The various categories in this section are:
Types of Property
Requirements regarding Underwriting
Eligibility of Mortgage Products
Options of Execution
Fees of Delivery
Loan to Value Ratios
Last Updated on : 1st July 2013