Chap 4 Real Estate Finance

Selling mortgage backed securities

Fannie Mae and Freddie Mac are able to replenish their own funds enabling them to purchase loans from primary lenders by what

Ginnie Mae

Is not a government sponsored enterprise

Administered price system

Lenders may order there a mandatory or standby commitment to sell loans to Fannie Mae through the

Freddie Mac's electronic underwriting system is known as

Loan Prospector

Freddie Mac buys mortgages and packages them into securities called

Participation certificates

Freddie Mac was originally chartered to

Provide a secondary market for conventional loans not FHA or VA loans

Federal housing finance agency FHFA

The agency establish to ensure the financial safety and soundnesss Of Fannie Mae and Freddie Mac is what

Does not meet Fannie Mae and Freddie Mac qualifying guidelines

The best description of a non-conforming loan is the one that

Guaranteeing FHA and VA mortgage backed securities

The most important role played by Ginnie Mae today is what

REMIC

The tax reform act of 1986 establish an entity that can issue multi class securities this entity which has added to and activities of the secondary market is the REMIC

Loans with a higher than 80% LTV required

Which of the following statements regarding Fannie Mae guidelines is true

A major function of the Federal Home Loan Bank System is to provide its members with

a national market for purchase of their loans

The action taken by the Federal Housing Finance Agency(FHFA) to stabilize Fannie Mae and Freddie Mac was to

place Fannie Mae and Freddie Mac into conservatorship

Ginnie Mae allows investors to combine mortgage-backed securities pools into a single security, receiving a single payment each month instead of separate payments for individual pools with

platinum securities

The duties of Federal housing finance agency includes all of the following establishing conforming loan limits, setting the percentage of loans to be made to low and moderate income borrowers, and regulating Fannie Mae and Freddie Mac but not...

supervising the FHA