17 Practice Questions

Réussis tes devoirs et examens dès maintenant avec Quizwiz!

Which of the following is an example of a loan that originated in the primary mortgage market? ABC Bank loan Fannie Mae loan Freddie Mac loan Ginnie Mac loan

ABC Bank loan

How does a lender in the primary mortgage market earn money when a loan is originated? By charging loan origination fees By preparing tax records By purchasing loans By setting interest rates

By charging loan origination fees

Fannie Mae, Freddie Mac, and the Federal Home Loan Bank are regulated by the ______. Federal Banking Institute Federal Housing Finance Agency Federal Reserve U.S. Congress

Federal Housing Finance Agency

How do the primary and secondary mortgage markets work together? The primary market packages loans to sell to the secondary market. The primary market regulates the secondary market. The secondary market packages loans to sell to the primary market. The secondary market regulates the primary market.

The primary market packages loans to sell to the secondary market.

If Acme Bank, a primary lender, wants to sell its loans on the secondary market, it would be easier for it to do so if its loans meet ______. Fannie Mae and Freddie Mac guidelines FDIC guidelines FHA guidelines VA guidelines

Fannie Mae and Freddie Mac guidelines

What could be a consequence if there were no secondary mortgage market? Interest rates would fall. Lenders might not have funds available to make new loans to the public. There wouldn't be any institutions available to service loans. Unemployment would rise.

Lenders might not have funds available to make new loans to the public.

The primary mortgage market operates to _____. Avoid inflation Create favorable economic conditions Originate loans Service loans

Originate loans

Commercial lenders operate in the _____mortgage market, making loans directly to consumers. Government Primary Secondary Sub-prime

Primary

In which market do lenders that originate real estate loans operate? Government market Primary mortgage market Real estate investment trust market Secondary mortgage market

Primary mortgage market

The secondary mortgage market serves a very important role in real estate finance. Which of these statements best describes that role? The secondary market funds junior mortgages. The secondary market makes loans to less creditworthy consumers. The secondary market purchases loans from primary lenders and helps keep credit available to loan originators. The secondary market regulates lenders in the primary market.

The secondary market purchases loans from primary lenders and helps keep credit available to loan originators.


Ensembles d'études connexes

Life Insurance Policy Provisions, Options & Riders

View Set

What is the capital/biggest city... Southwest Asia, North Africa

View Set

Nervous System Part B and Special Senses exam

View Set

Chapter 39- The Balance of Payments, Exchange Rates, and Trade Deficits

View Set

MIS 111 Exam 3 PARS, MIS 111 Exam 3 ICQs

View Set