section 15 unit 3 exam

Of the institutions listed, which of these is viewed only as a secondary mortgage market player?

Fannie Mae

Which statement most accurately describes the role and function of Ginnie Mae in the secondary mortgage market?

Ginnie Mae insures MBSs made up of government-insured or -guaranteed loans.

Which of the following statements about Freddie Mac is correct?

It sells participation certificates to investors to raise funds to purchase additional loans from lenders.

Which of the following loan types can be packaged into a mortgage-backed security eligible for guarantee by Ginnie Mae?

Loans insured or guaranteed by U.S. government agencies

Which of the following describes a Ginnie Mae investment?

a safe investment

In a loan to purchase which of the following property types is NOT eligible for purchase by Fannie Mae?

commercial space

Which of the following is a guideline used by Freddie Mac when determining if a loan is conforming?

down payment

The Government National Mortgage Corporation was created in 1968 under the Department of Housing and Urban Development (HUD) and is more commonly known as ______.

ginnie mae

How does Ginnie Mae function differently than Fannie Mae and Freddie Mac?

it doesn't buy loans or issue mortgage-backed securities

Freddie Mac's mission is to provide ______, stability, and affordability in the U.S. housing market.

liquidity

Several actions take place on the secondary mortgage market. Which of these is a common activity?

packaging loans into mortgage backed securities

Institutions that purchase loans, package them into mortgage-backed securities, then sell these to investors may commonly be referred to as ______.

secondary market players