"terms to unsuspecting students. New York Attorney General, Andrew Cuomo, raised similar concerns about possible student loan redlining in June 2007. The lawsuit was settled and dismissed in 2011. Under the terms of the settlement, Sallie Mae agreed to make a $500,000 donation to the United Negro College Fund and the attorneys for the plaintiffs received $1.8 million in attorneys' fees. On January 31, 2008, SLM Corporation had a lawsuit for failing to adequately reserve for losses in Sallie Mae's non-traditional portfolio and paid $35,000,000 for settlement. A False Claims suit was filed against Sallie Mae by former U.S. Department"
"Ellie Mae Ellie Mae, Inc. is a software company that processes 35% of U.S. mortgage applications. The services are based on a software as a service model (SaaS) that streamlines and automates the process of originating and funding new mortgage loans and facilitating regulatory compliance. The company was founded in 1997 by Limin Hu and Sigmund Anderman, and is headquartered in Pleasanton, California. In January 2014, Ellie Mae finally completed the acquisition of MortgageCEO (focusing on CRM). Also in January 2014, Ellie Mae completed the acquisition of ARG Interactive, LLC. In 2008 Ellie Mae acquired the assets of Online Document"
"2010, all federal loans were originated directly by the U.S. Department of Education. The company announced in 2013 its plans to separate into two publicly traded companies – an education loan management business to be launched with a new name – Navient – and a consumer banking business, which retained the name Sallie Mae. The spin-off was completed on April 30, 2014. In 2015, Navient attracted recognition from 2020 Women on Boards, the Women's Forum of New York, and the New York Stock Exchange Governance Services for gender diversity on its board of directors The company acquired asset recovery and"
"in this segment are sold into the secondary market, mainly in the form of mortgage-backed securities. In 2006, 45% of those mortgages were conventional non-conforming loans, loans too large to sell to Fannie Mae. The company generally performs the ongoing servicing functions related to the mortgage loans that it produces. It also provides various loan closing services, such as title, escrow and appraisal. The Mortgage Banking segment consists of three distinct sectors: Loan Production, Loan servicing and Loan Closing Services. The role of Loan Production is to originate and fund new loans, and to acquire already-funded loans through purchases from"
"diversity, and environmental best business practices. Sallie Mae sponsors The Sallie Mae Fund, a charitable organization with a mission to increase access to higher education for America's students by supporting and starting programs and initiatives that help open doors to higher education. The Sallie Mae Fund prepares families and students for college and provides scholarship funding that focuses on minority, low-income, and ""first in the family"" students. Since 2001, The Sallie Mae Fund has awarded $10 million in scholarships to help 4,000 students enroll in college. Through The Fund's work, Sallie Mae was named among ""BusinessWeek""'s Top 15 Corporate Philanthropists"
"markets by selling bonds, and provides liquidity to mortgage originators by purchasing whole loans. It purchases whole loans and then securitizes them for the investment market by creating MBS that are either retained or sold. As a Government Sponsored Enterprise, or GSE, Fannie Mae is compelled by law to provide liquidity to mortgage originators in all economic conditions. It must legally ignore adverse market conditions which appear to be unprofitable. If there are loans available for purchase that meet its predetermined underwriting standards, it must purchase them if no other buyers are available. Due to the size, scale, and scope"
"are the Federal National Mortgage Association, Fannie Mae, the Federal Home Loan Mortgage Corporation, or Freddie Mac. Congress created the first GSE in 1916 with the creation of the Farm Credit System; it initiated GSEs in the home finance segment of the economy with the creation of the Federal Home Loan Banks in 1932; and it targeted education when it chartered Sallie Mae in 1972 (although Congress allowed Sallie Mae to relinquish its government sponsorship and become a fully private institution via legislation in 1995). The residential mortgage borrowing segment is by far the largest of the borrowing segments in"
"had received loans below market rate from Countrywide Financial. Fannie Mae was the biggest buyer of Countrywide's mortgages. The ""Friends of Angelo"" VIP Countrywide loan program included many people from Fannie Mae; lawyers, executives, etc. Fannie Mae and Freddie Mac have given contributions to lawmakers currently sitting on committees that primarily regulate their industry: The House Financial Services Committee; the Senate Banking, Housing & Urban Affairs Committee; or the Senate Finance Committee. The others have seats on the powerful Appropriations or Ways & Means committees, are members of the congressional leadership or have run for president. In December 2011, six"
"Mae does not use derivatives to hedge and it does not carry long-term debt (or related outstanding securities liabilities) on its balance sheet. Instead, private lending institutions approved by Ginnie Mae originate eligible loans, pool them into securities, and issue the Ginnie Mae MBS instruments. These institutions include geographically diverse mortgage companies, commercial banks, and thrifts of all sizes, as well as state housing finance agencies. In 1970, Ginnie Mae became the first organization to create and guarantee MBS products and has continued to provide mortgage funds for homebuyers ever since. Even in uncertain times, investors are guaranteed payment of"
"as the Best Online Savings Account. In December 2011, ""Kiplinger’s Personal Finance"" recognized Sallie Mae Bank as the Best Money Market Account. In December 2012, ""Kiplinger’s Personal Finance"" recognized Sallie Mae Bank as “the best place to stash cash.” In December 2013, ""Kiplinger’s Personal Finance"" recognized Sallie Mae Bank as the Best Savings Account. A ""60 Minutes"" segment (originally aired May 7, 2006) examined Sallie Mae, including its business practices. Elizabeth Warren, then a professor at Harvard Law School and sharp critic of what she characterizes as unfair lending practices and later a US Senator, questioned Sallie Mae's dual role"
"Government Sponsored Enterprises (GSEs) (Freddie Mac, Fannie Mae, or Ginnie Mae). GSE guaranteed loans can serve as collateral for ""Agency CMOs"", which are subject to interest rate risk but not credit risk. Loans not meeting these criteria are referred to as ""Non-Conforming"", and can serve as collateral for ""private label mortgage bonds"", which are also called ""whole loan CMOs"". Whole loan CMOs are subject to both credit risk and interest rate risk. Issuers of whole loan CMOs generally structure their deals to reduce the credit risk of all certain classes of bonds (""Senior Bonds"") by utilizing various forms of credit"
"and Pricing Service, & Encompass 4506-T Service (tax transcript services). October 2013 – Ellie Mae won the 2013 Lenders’ Choice Mortgage Technology Award. Mortgage Technology Magazine’s 2009 Release of the Year Award; Top 50 Service Provider in 2007, 2008 and 2009, won the Synergy Award in 2006, Top 25 Vendor in 2006, Top 100 Vendor in 2004 and 2005, and Top Three FIX-IT and Synergy Companies in 2003 and 2005. All of the awards are presented by ""Mortgage Technology"" magazine. Ellie Mae Ellie Mae, Inc. is a software company that processes 35% of U.S. mortgage applications. The services are based"
"of the underlying loans is ""passed through"" to investors; because of Ginnie Mae's financial backing, these MBS instruments are particularly attractive to investors and, like other Agency MBS instruments, are eligible to be traded in the ""to-be-announced,"" or ""TBA"" market. Ginnie Mae guarantees only securities backed by single-family and multifamily loans insured by government agencies, including the FHA, Department of Veterans Affairs, the Department of Housing and Urban Development’s Office of Public and Indian Housing, and the Department of Agriculture’s Rural Development. Ginnie Mae neither originates nor purchases mortgage loans. It does not purchase, sell, or issue securities. Accordingly, Ginnie"
"in 2004. The ""Washington Business Journal"" identified the company as the top local corporate philanthropist in 2005. Sallie Mae won the Ron Brown Award for Corporate Leadership in 2006. It was honored for three college-access programs developed by The Sallie Mae Fund: Latino College Access Campaign, Project Access: DC, and The Sallie Mae Fund Scholarship Programs. The Sallie Mae Fund earned the 2007 Insight Award for Customer Advocacy in Financial Services (from Insight Forums, LLC). The award recognizes financial communications initiatives that proactively enable customers to make fully informed choices. In December 2010, ""Kiplinger’s Personal Finance"" recognized Sallie Mae Bank"
"Loan servicing Loan servicing is the process by which a company (mortgage bank, servicing firm, etc.) collects interest, principal, and escrow payments from a borrower. The vast majority of mortgages are backed by the government or government-sponsored entities (GSEs) through purchase by Fannie Mae, Freddie Mac, or Ginnie Mae (which purchases loans insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA)). Because GSEs and private loan investors typically do not service the mortgage loans that they purchase, the bank who sells the mortgage will generally retain the right to service the mortgage pursuant"
"transaction completed, J.C. Flowers along with private-equity firm Friedman Fleischer & Lowe would have owned 50.2% of Sallie Mae, and Bank of America and JPMorgan Chase would each have owned 24.9%. Sallie Mae would have ceased to be a publicly traded company. The deal fell through in September 2007, with the buyers blaming adverse changes to the business's outlook as a result of the College Cost Reduction and Access Act of 2007 and the tightening of global credit markets following the 2007 subprime mortgage financial crisis. Sallie Mae subsequently began legal action, only to drop it in January 2008 upon"
"can also register and have their earnings transferred to the member. Offline, members can also earn cash back rebates at various participating locations. For restaurants, users can earn 5% cash back of the amount spent on meals. the program had over 10,000 participating restaurants and 20,000 participating grocery and drugstores. Upromise Upromise is a company in the United States that provides a loyalty program of the same name, where members accrue credits on eligible purchases that are directed to a college savings plans or to pay down student loans. The company has been owned by Sallie Mae since 2006 and"
"interest and principal, in full and on time. The benefits of this process are passed on to the lenders who can then make more mortgage loans at more affordable rates. Ginnie Mae is a wholly owned government corporation. Fannie Mae and Freddie Mac, on the other hand, are ""government-sponsored enterprises"" (GSEs), which are federally chartered corporations, but still privately owned by shareholders. In September 2008 the GSEs were placed under government conservatorship. Ginnie Mae neither originates nor purchases mortgage loans nor buys, sells or issues securities in the U.S. capital markets. The credit risk on the mortgage collateral underlying its"
"with a given borrower's profile can move the loan out of the ""prime"" category of agency-conforming loans and into less stringent categories such as Alt-A and subprime. For example, Fannie Mae might agree to purchase all loans made by a particular lender on single family second homes in a particular area at a particular maximum LTV for borrowers within given income, asset and credit limits. Borrowers beyond those limits, or those seeking loans above that maximum LTV for second homes, would need to apply for an Alt-A loan. Borrowers still further outside the income, asset and credit limits might need"
"such as Ginnie Mae, are active lenders for multifamily commercial real estate (that is, apartment buildings) in the United States. Approximately $390 billion of multifamily residential mortgages were held by government-sponsored enterprises or Agency and GSE-backed mortgage pools as of June 30, 2013, representing 12% of total commercial mortgages outstanding and 43% of multifamily commercial mortgages outstanding at that time. Insurance companies are active investors in commercial mortgages, and hold approximately $325 billion of commercial mortgages as of June 30, 2013. Mortgage brokers do not provide commercial mortgage loan, but are often used to obtain multiple quotes from different potential"
"completion of a $31 billion funding round, including funding from Bank of America. On April 6, 2009, Sallie Mae announced that it will move 2,000 jobs back to the U.S. within the next 18 months as it shifts call center and other operations from overseas. On March 31, 2010, Sallie Mae announced the impending layoff of 2,500 employees in response to the signing of new legislation calling for the federal government to lend directly to students, bypassing institutions like Sallie Mae. On July 1, 2010, Sallie Mae announced that it will be moving its headquarters from Reston, Virginia, to its"
"the lender; however, in 2006 and 2007 Fannie Mae did purchase subprime and Alt-A loans as investments. Fannie Mae is a purchaser of mortgages, which it packages into MBS. Fannie Mae buys loans from approved mortgage sellers and securitizes them; it then sells the resultant mortgage-backed security to investors in the secondary mortgage market, along with a guarantee that the stated principal and interest payments will be timely passed through to the investor.. In addition, Fannie MBS, like those of Freddie Mac MBS and Ginnie Mae MBS, are eligible to be traded in the ""to-be-announced,"" or ""TBA"" market. By purchasing"
"median price home loans. Therefore, mortgage lending is dependent on the secondary market, which includes securitization on Wall Street and other large funds. The largest secondary market or""wholesale"" institutions are Federal National Mortgage Association, and the Federal Home Loan Mortgage Corporation, commonly referred to as Fannie Mae and Freddie Mac, respectively. Loans must comply with their jointly derived standard application form guidelines so they may become eligible for sale to larger loan servicers or investors. These larger investors could then sell them to Fannie Mae or Freddie Mac to replenish warehouse funds. The goal is to package loan portfolios in"
"loans as a competitive response to Fannie and Freddie, the GSE's still controlled nearly 50% of all subprime lending. From 2003 forward, private lenders increased their share of subprime lending, and later issued many of the riskiest loans. However, attempts to defend Fannie Mae and Freddie Mac for their role in the crisis, by citing their declining market share in subprimes after 2003, ignore the fact that the GSE's had largely created this market, and even worked closely with some of the worst private lending offenders, such as Countrywide. In 2005, one out of every four loans purchased by Fannie"
"firms. This holds true even for loans to borrowers with similar credit scores or down payments. For example, data compiled by the FCIC for a subset of borrowers with scores below 660 shows that by the end of 2008, far fewer GSE mortgages were seriously delinquent than non-GSE securitized mortgages: 6.2 percent versus 28.3 percent."" Although under Raines, Fannie Mae invested in some securities backed by subprime loans, it didn't start buying subprime and Alt-A loans directly (and bundling them into securities) until 2006 after Raines had left Fannie Mae. Purchasing of subprime and alt-A mortgages expanded under the guidance"
"of the United States single-family residential and commercial residential markets, market participants viewed Fannie Mae corporate debt as having a very high probability of being repaid. Fannie Mae is able to borrow very inexpensively in the debt markets as a consequence of market perception. There usually exists a large difference between the rate at which it can borrow and the rate at which it can 'lend'. This was called ""The big, fat gap"" by Alan Greenspan. By August 2008, Fannie Mae's mortgage portfolio was in excess of $700 billion. Fannie Mae also earns a significant portion of its income from"
"allegedly rewarded university financial aid staff with ""kickbacks"". This has led to changes in lending policy at many major American universities. Many universities have also rebated millions of dollars in fees back to affected borrowers. The biggest lenders, Sallie Mae and Nelnet, are frequently criticized by borrowers. These lenders often find themselves embroiled in lawsuits, the most serious of which was filed in 2007. The false claims suit was filed on behalf of the federal government by former Department of Education researcher Jon Oberg against Sallie Mae, Nelnet, and other lenders. Oberg argued that the lenders overcharged the U.S. government"
"Fannie Mae may issue a loan approval to a client through its mortgage broker, which can then be assigned to any of a number of mortgage bankers on the approved list. The broker will often compare rates for that day. The broker will then assign the loan to a designated licensed lender based on their pricing and closing speed. The lender may close the loan and service the loan. They may either fund it permanently or temporarily with a warehouse line of credit prior to selling it into a larger lending pool. The difference between the ""Broker"" and ""Banker"" is"
"enterprises (GSEs) that purchase mortgages, buy and sell mortgage-backed securities (MBS), and guarantee a large fraction of the mortgages in the U.S. The Financial Crisis Inquiry Commission (FCIC) reported in 2011 that Fannie Mae & Freddie Mac ""contributed to the crisis, but were not a primary cause."" The FCIC reported that: The Commission found GSE loans had a delinquency rate of 6.2% in 2008 versus 28.3% for non-GSE or private label loans. Taking the roughly 25 million mortgages outstanding at the end of each year from 2006 through 2009 and subdividing them into 500+ subgroups according to characteristics like credit"
"prepayment model. Commitment rate Commitment rates are the rates at which mortgage loans can be sold to another entity, such as Fannie Mae and Freddie Mac or other lenders. The Fannie Mae Commitment Rate is the rate that Fannie requires for a par-priced loan. From the commitment rate, Fannie extracts its guarantee fee (which has tended to average around 19bp). The remaining interest goes to the secondary market investor. So, the Fannie Mae Commitment Rate is loosely the sum of the Fannie Mae current-coupon rate and Fannie Mae’s guarantee fee. They, with the characteristics of loan pool, can be input"
"Fannie Mae The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) and, since 1968, a publicly traded company. Founded in 1938 during the Great Depression as part of the New Deal, the corporation's purpose is to expand the secondary mortgage market by securitizing mortgages in the form of mortgage-backed securities (MBS), allowing lenders to reinvest their assets into more lending and in effect increasing the number of lenders in the mortgage market by reducing the reliance on locally based savings and loan associations (or ""thrifts""). Its brother organization is the Federal"
"sponsored entities, to foster mortgage lending, construction and encourage home ownership. These programs include the Government National Mortgage Association (known as Ginnie Mae), the Federal National Mortgage Association (known as Fannie Mae) and the Federal Home Loan Mortgage Corporation (known as Freddie Mac). These programs work by offering a guarantee on the mortgage payments of certain conforming loans. These loans are then securitized and issued at a slightly lower interest rate to investors, and are known as mortgage-backed securities (MBS). After securitization these are sometimes called ""agency paper"" or ""agency bonds"". Whether or not a loan is conforming depends on"
"market. Fannie Mae and Freddie Mac entered a new phase on December 9, 2008 for a fast-track program meant to make ""hundreds of thousands of mortgages affordable to people who can't currently meet their monthly payments."" Through the SMP, servicers may change the terms of a loan to reduce a borrower's first lien monthly mortgage payment, including taxes, insurance and homeowners association payments, to an amount equal to 38 percent of gross monthly income. The changes in terms may include one or more of the following: Fannie Mae's foreclosure prevention efforts have generally been made available to a borrower only"