Texas Real Estate Finance - Chapter 4
Fannie Mae
The Federal National Mortgage Association is also known as...? Freddie Mac Fannie Mae Farmer Mac Ginnie Mae
Liquidity
The secondary mortgage market offers ...........for the primary mortgage market? Loans Insurance Liquidity Warranties
Ginnie Mae
This is a U.S. government agency that purchases FHA and VA mortgages...? FDIC HUD Farmer Mac Ginnie Mae
Secondary mortgage market
The marketplace whereby the loans that were originated in the primary mortgage market are bought and sold is known as the...? Front-end mortgage market Secondary mortgage market Back-end mortgage market Stock market
Fixed Interest Rate Loan
A loan where the interest rate does not fluctuate during the term of the loan is known as a...? Fixed Interest Rate Loan ARM Dynamic Rate Loan Variable Rate Loan
Jumbo loan
A loan whose amount is above conventional conforming loan limits set by Fannie Mae and Freddie Mac is known as a...? ARM Commercial loan Term loan Jumbo loan
Adjustable Rate Mortgage
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 Fixed Interest Rate Loan Term Loan Straight Loan
Conventional loan
A mortgage made without governmental underwriting is referred to as a/an...? Conventional loan FHA insured loan VA loan Unconventional loan
Fannie Mae
Conforming loans must meet the guidelines of...? FDIC Wall street Fannie Mae RESPA
Federal Home Loan Mortgage Corporation
Freddie Mac is also known as the...? Government National Mortgage Association Federal National Mortgage Association Federal Home Loan Mortgage Corporation Federal Housing Finance Association
Negative amortization loans
In this loan type, the principal balance of the loan increases over time...? All of the above Negative amortization loans Fully amortizing loans Fixed interest rate loan
Primary mortgage market
Justin obtained a mortgage from his local bank in order to purchase a new house. Justin was operating in the...? Primary mortgage market Secondary mortgage market Front-end mortgage market Back-end mortgage market
Conforming loans
Loans processed on uniform loan forms according to FNMA/FHLMC guidelines are known as...? Conforming loans Conventional loans Non-conforming loans Private loans
20 Percent (%)
Private mortgage insurance is not needed if the borrower makes a down payment of at least...? 10 Percent (%) 3.5 Percent (%) 5 Percent (%) 20 Percent (%)
Credit score
This is a number assigned to a person that indicates to lenders their capacity to repay a loan...? Credit score Underwriting score Loan estimate score Financial score
Fannie Mae
This is a privately owned corporation that purchases FHA, VA, and conventional mortgages...? Freddie Mac Fannie Mae Farmer Mac Ginnie Mae
Commercial banks
Which of the following operates in the primary mortgage market...? Commercial banks Fannie Mae Freddie Mac Ginnie Mae
All of the above
Which of the following operates in the secondary mortgage market...? Fannie Mae Freddie Mac Ginnie Mae All of the above
Farmer Mac
Which of the following purchases agricultural loans...? Ginnie Mae Freddie Mac Fannie Mae Farmer Mac