Chapter 4
A mortgage loan which bears interest at a rate subject to change during the term of the loan, predetermined or otherwise, is known as a/an...?
Adjustable Rate Mortgage
Which of the following is paid on FHA insured loans where the borrower puts down a minimum down payment...?
MIP
Private mortgage insurance is not needed if the borrower makes a down payment of at least...?
20%
Which of the following operates in the primary mortgage market...?
Commercial banks
Loans processed on uniform loan forms according to FNMA/FHLMC guidelines are known as...?
Conforming loans
A mortgage made without governmental underwriting is referred to as a/an...?
Conventional loan
This is a number assigned to a person that indicates to lenders their capacity to repay a loan...?
Credit score
Conforming loans must meet the guidelines of...?
Fannie Mae
The Federal National Mortgage Association is also known as...?
Fannie Mae
This is a privately owned corporation that purchases FHA, VA, and conventional mortgages...?
Fannie Mae
Which of the following operates in the secondary mortgage market...?
Fannie Mae Freddie Mac Ginnie Mae
Freddie Mac is also known as the...?
Federal Home Loan Mortgage Corporation
A loan where the interest rate does not fluctuate during the term of the loan is known as a...?
Fixed Interest Rate Loan
This is a U.S. government agency that purchases FHA and VA mortgages...?
Ginnie Mae
A loan whose amount is above conventional conforming loan limits set by Fannie Mae and Freddie Mac is known as a...?
Jumbo loan
The secondary mortgage market offers ...........for the primary mortgage market?
Liquidity
Justin obtained a mortgage from his local bank in order to purchase a new house. Justin was operating in the...?
Primary mortgage market
The marketplace whereby the loans that were originated in the primary mortgage market are bought and sold is known as the...?
Secondary mortgage market
Ginnie Mae was created under the...?
Urban Development Act of 1968
