Connect with us

Bitcoin

The Flow of Mortgage Funds – Your Local Bank to Mortgage Backed Securities

Published

on

The availability of funds in the primary market depends a great deal on the existence of secondary markets. First, mortgage funds are loaned to a homebuyer by a lending institution in the primary market. The mortgage is then sold to a secondary market agency that may, in turn, sell it to other investors in the form of mortgage backed securities. Mortgage backed securities fall into two general types: Bond-type securities and pass through securities. Bond-type securities are long-term, pay interest semi-annually, and provide for repayment at a specified date. Pass through securities, which are more common, pay interest and principal payments on a monthly basis. Some types of pass through securities pay even if payments are not collected from the borrower.

Because a primary lender sold the mortgage, the lender can take the money it receives from the sale and make another mortgage loan, then sell that new loan to the secondary market, and continue the cycle. The secondary market agency can pool the mortgages it buys to create mortgage backed securities, which they then sell to investors. As the secondary market agency sells the mortgage backed securities to investors, it now has more funds to buy more mortgages. It can then create more mortgage backed security pools to sell to investors again, and the cycle continues.

The market is able to function as it does because standardized underwriting criteria are used to qualify borrowers and property. A mortgage will only be purchased by the secondary market if the primary market lender conformed to the secondary market’s underwriting standards. Since lenders want to sell their loans, they must follow the underwriting standards of those agencies. The three largest secondary market agencies are Fannie Mae, Freddie Mac, and Ginnie Mae. Therefore, a conforming loan is typically a loan that conforms to Fannie Mae’s underwriting guidelines. Private companies such as hedge funds and investment banks also participate in the flow of mortgage funds by buying mortgage backed securities. The recent credit meltdown and economic recession was partly due to the buying and selling of mortgage backed securities. Investors borrowed incredible amounts of money and leveraged themselves so dramatically that when the value of mortgage backed securities went down, it was enough to create enormous liquidity problems for the companies and many went out of business (Bear Stearns, Merrill Lynch, etc.). Unfortunately, many of the same dynamics that caused the financial collapse are still in operation today. The secondary market still exists with Fannie Mae (infused with taxpayer money) now buying up to 99% of all loans originated in the United States.

google news

Bitcoin

Floki Inu All Set To Be Advertised on the Tallest Building Burj Khalifa

Published

on

Floki Inu All Set To Be Advertised on the Tallest Building Burj Khalifa

Meme coins are gaining traction in the cryptocurrency world because investors appear to love them. Consequently, meme token projects are gaining traction, and developers are deploying them out.

Tomorrow, the world’s highest structure, the Burj Khalifa, will be advertising Floki Inu, a meme currency initiative. In a tweet yesterday, the team disclosed this new development, and it is intended to be a major draw for the project.

As of right now, Floki Inu is engaged in three utility-related endeavours. In addition to Valhalla, the company is developing an NFT game metaverse, an NFT marketplace, and a content education platform dubbed Floki Inuversity.

The reigning world boxing champion Tyson Fury has lent his support to the initiative. Kerala Blasters, SSC Napoli, Cádiz CF, and FC Goa are just a few teams already working with Floki Inu.

Price Surge After the Announcement

Elon Musk was also mentioned, who is now one of the most powerful figures in cryptocurrencies. It was back in September when Tesla CEO Elon Musk tweeted a selfie of himself and his Shiba Inu with the message “Floki has arrived.”

Since the announcement of FLOKI’s display atop the Burj Khalifa yesterday, the team’s stock has surged. More than 14 percent has been added to FLOKI’s value within 24 hours, outpacing the whole cryptocurrency market.

After dipping into negative territory for several weeks, the cryptocurrency’s MACD line is now in the neutral zone. A positive trend in FLOKI’s performance can be seen by its RSI of 47, which indicates that the stock is moving out of the oversold zone. Just above the 50-day moving average, FLOKI is trading at $0.0001601.

google news
Continue Reading

Bitcoin

“The United States Is Already Mining” Bitcoin… “Maybe,” Says Compass Mining CEO

Published

on

Compass Mining, U.S. flag and helicopter

Does the Compass Mining CEO know something we don’t? Is The United States mining Bitcoin? Whit Gibbs was a guest in a recent episode of Anthony Pompliano’s “The Best Business Show” and spilled the beans… or did he? The host cleverly disguised his question by talking about other countries following El Salvador’s footsteps and starting mining Bitcoin. He also mentioned Venezuela and other not-friendly to the U.S. countries already doing it. Then, he asked point-blank, what would it take for their country to start mining?

Related Reading | Will Bitcoin Mining Backed Volcano Bonds Be Enough To Ward Off The IMF?

“The United States is already mining,” Gibbs answered. And then softened the blow with a “Maybe.” If true, this is huge. And the implications are even greater. “They might have like 10 or 20 watts running somewhere in the midwest to test it out. Maybe. It’s hypothetically speaking. But, it’s a matter of national security.” Was that hypothetical? Or was the Compass Mining CEO giving us inside information? That’s what we’ll try to figure out.

But first, here’s the video: 

What Does The Compass Mining CEO Know?

Well, for starters, he knows Bitcoin is the hardest asset ever created. “When it comes to mining, when you’re talking about what Bitcoin is, whether it’s a store of value, it’s a medium of exchange. It’s the future financial instrument that many, many things are going to be built on top of. Nations would have to be absolutely out of their mind to not be getting some exposure to the underlying infrastructure which supports it.” 

So, it’s safe to say that the Compass Mining CEO is bullish on Bitcoin. Why do we think he might know something the rest of the world doesn’t, though? Gibbs continues, “So, the US I think is on the front foot. We’ve had a lot of conversations with the government in DC, state governments, to help educate them, but they are very forward-thinking when it comes to supporting this.”

So, does the Compass Mining CEO know something we don’t? Is The United States mining Bitcoin already?

Gibbs completes the idea by saying that El Salvador is showing the way to countries that are not at the forefront and, historically, have been hurt by the current system. They now know that being early to Bitcoin can make a huge impact and “get them there.”

BTC price chart for 12/03/2021 on FTX | Source: BTC/USD on TradingView.com

Other Countries That Are Already Mining Bitcoin

Story Time With Pomp And Gibbs. The host senses that the guest knows something and tries to get it out of him. Pompliano shares a story with him: he knows that in 2012-2013 a Federal law enforcement agency was mining Bitcoin. The rationale was that they couldn’t get a budget approved to buy Bitcoin at exchanges to fund black/ undercover operations. So, they filled papers to get computers instead and started mining. The Bitcoin they got was untraceable, it had no history. And they used it to run operations.

Then, it was Gibbs turn. “So, this is how you get in trouble,” the Compass Mining CEO answered. Cleverly, he shifted the focus from the U.S. to other countries. According to Gibbs, a North African that’s a hotspot for the United States is getting into Bitcoin Mining. This is happening at the presidential level.

Related Reading | Bitcoin Mining In The U.S.: 4 States Attract The Most Miners

Also, he lives in Latvia. A very close neighbor of Latvia, “that may have stopped a plane no too long ago, to remove a journalist,” is already mining Bitcoin with nuclear power. The Compass Mining CEO closes his stellar presentation with, “I don’t believe that they’re mining Bitcoin to skirt sanctions. I believe that they’re mining Bitcoin because they see it as the future, and they want to boost their economy, they want to grow.”

You read it here first, Bitcoin is the future and many world leaders know it.  

 Featured Image by Christopher Skor on Unsplash - Charts by TradingView
google news
Continue Reading

Bitcoin

How Crypto Champions can help you increase the rarity of your NFT

Published

on

How Crypto Champions can help you increase the rarity of your NFT

The last few years have been exceptional for NFTs. Our idea of digital assets and their ownership has experienced (and is still experiencing) rapid evolution. Very few people would have boldly predicted a public tweet selling for $2.5 million or a there-for-all-to-see clip of Lebron James dunking selling for $200,000. But, as we’ve all figured out, the creation, sales, and ownership of digital assets are well within the possibility realm.

Several other digital assets have been sold as NFTs in a very short time. Every passing day suggests that the NFT train or “NFT craze” will not disappear anytime soon. So, if you’re still thinking about joining the NFT movement, stop thinking and start acting.

As far as actions relating to NFTs go, there’s one action that anyone— NFT expert or NFT newbie — should be taking right now.

What’s that?

Signing up to be a part of the hottest NFT project right now — Crypto Champions!

Value, Inclusion, NFTs, and Crypto Champions

Crypto Champions is, first, a community-led NFT project. More than NFTs, the Champions Community’s goal is to build a strong network of competent and highly successful people using the powers of Web 3.0 ( NFT, Cryptocurrency, Metaverse, and Crypto Gaming).

The Champions Community is strongly focused on building and sustaining an enabling environment for its members to grow to be the best they can be. Everything from timely investment opportunities, networking with top-notch professionals, and publicly trackable $1 million gift are all accessible for high-performing community members.

The Champions Community also has a community fund powered by DAO (Decentralized Autonomous Organization) technology to support member-led project initiatives. You don’t have to worry about being left out because it is all about getting everyone to where they want to be in the Champions Community.

… and we’ve not even gotten to the NFT part!

The NFT Angle

The Champions Collection consists of 8,888 unique NFTs only accessible through an exclusive Web 3.0. Champion NFTs are a collection of high-quality human 3D models divided into two factions — Privileged and Rebels.

In their separate factions, each of the NFTs has at least 136 combined unique traits, expressions, weapons, uniforms, and gears. When you successfully mint a Crypto Champion NFT, you become a Champion holder. “Fate” will decide whether the character you mint belongs to the Privileged or Rebels faction. With Crypto Champions, minting is fun — and valuable!

Unlike many other NFT projects, the Champions Community does not make it easy for anyone to mint a Champion and become a part of the community. Minting is specially reserved for community members devoted to helping the community grow and who have proved to be high-performing individuals.

The ultimate display of the power of the Champion NFTs reveals itself when the Rebels and Privileged factions lock heads and fight against each other in the Metawar.

Exponential Increase in NFT Value

Crypto Champions NFTs are not static in value; they are actually very dynamic. Champion holders who mint rare NFTs can make up to ten times the initial NFT market value.

Rare NFTs are great, but they are not the only way to amp up the market value of your Champions. Fortunately. Champions holders can up the market value of their NFTs by participating and competing in a short series of three easy-to-play games. Holders with higher scores gain access to rare weapons and accessories that sporadically boost the market value of their NFTs.

Your Best Way to NFT Nirvana

By offering Champions holders a way to amp up the original market value of their NFTs, Crypto Champions is hammering on the certainty of financial growth for its members. This is virtually impossible to find in any other sort of NFT-related project.

The Champions Community also offers its members a different kind of merch — dog tags. You’re given a pretty durable, distinctly customized dog tag when you sign up to be a part of the Crypto Champions project.

Dog tags are not just accessories because they represent something bigger and better, and dog tags represent meaningful displays of brotherhood and communal strength.

With Crypto Champions, you get a community of progressive people, the opportunity to accumulate more wealth while wearing very cool dog tags. It’s everything anyone and everyone wants from NFTs.

google news
Continue Reading

Trending