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