Home mortgages, also referred to as one-to-four family mortgages, are loans collateralized by residential properties with one to four units and condominiums and cooperatives in structures with five or more units, as well as construction and land development loans on residential properties. Loans made under home equity lines of credit and home equity loans secured by junior liens are included, and they are shown as a memo item with detail by lender.
The household sector is the primary borrower of home mortgages. Borrowing to finance the purchase of investment properties is considered borrowing by the nonfinancial noncorporate business sector. Home mortgages held by the household sector are typically seller-financed loans. Home mortgages that have been securitized and removed from the originator's balance sheet are reported as assets of either the sector for agency- and GSE-backed mortgage pools or the sector for issuers of asset-backed securities.