Section 4: The Secondary Mortgage Market
What must a qualified mortgage's loan term limit be?
30 years or less
Which percentage reflects the top debt-to-income ratio limit for qualified mortgages?
43%
What is a government-sponsored enterprise? A corporation that issues home loans on the primary market A department of the U.S. Treasury that regulates the mortgage industry A government agency that makes certain borrowing easier and cheaper A private company the U.S. Congress created to make certain borrowing easier and cheaper
A private company the U.S. Congress created to make certain borrowing easier and cheaper
______ is regulated by the Federal Housing Finance Agency.
Freddie Mac
Which agency sets the guidelines for qualified mortgages? The Consumer Financial Protection Bureau The Federal Home Loan Bank The Federal Housing Finance Agency The U.S. Congress
The Consumer Financial Protection Bureau
______ sets conforming loan limits for mortgages.
The Federal Home Financing Agency
Which of the following is regulated by the Federal Housing Finance Agency?
Fannie Mae
In 2008, as a response to the 2007 financial crisis, the Federal Housing Finance Agency began acting as conservator over which institutions?
Fannie Mae and Freddie Mac
GSE-eligible Qualified Mortgage
Loan that meets all the requirements and can be purchased, insured, or guaranteed by a GSE, FHA, VA, or USDA.
Small Creditor Qualified Mortgage
Loan that meets all the requirements and is originated by a lender that makes 500 or fewer mortgages annually and has $2 billion or less in assets.
General Qualifies Loan
Loan that meets all the requirements set and has a debt-to-income ratio of 43% or less.
Which of the following is NOT a benefit government-sponsored enterprises receive? Non-profit status Relief from registering with the Securities and Exchange Commission Reprieve from paying income tax U.S. Treasury line of credit
Non-profit status
Government-Sponsored Enterprises (GSEs) were created by the U.S. Congress for what purpose?
To make a percentage of loans available to low and moderate income borrowers
