Unit 12
Fannie Mae debt-to-income ratios requirement is:
28/36
Fannie Mae is a:
A quasi-private corporation with government oversight
Fannie Mae currently buys loans at:
An administered price
All of the following agencies are participants in the secondary mortgage market except: -Fannie Mae -CalHFA -Ginnie Mae -Freddie Mac
CalHFA
The term used to describe loans that conform to the Fannie Mae/Freddie Mac qualifying guidelines is:
Conforming
Loan originators that sell mortgages to Fannie Mae can: -Follow their own underwriting standards -Continue to service the loans -Continue to count the loans as assets in their portfolios -Repurchase the loans at a later date
Continue to service the loans
The BEST description of a nonconforming loan is one that: -Exceeds loan limits set annually by Fannie Mae and Freddie Mac -Does not meet Fannie Mae and Freddie Mac qualifying guidelines -Is restricted to four-family units -Is limited to low-income housing
Does not meet Fannie Mae and Freddie Mac qualifying guidelines
Desktop Origination
Electronic loan processing
Government-Sponsored Enterprises (GSE)
Fannie Mae and Freddie Mac
Administered Price System
Fannie Mae securities purchasing procedure where required yields are adjusted daily to reflect financial market factors
Desktop Underwriter
Fannie Mae's electronic system for qualifying borrowers
The Federal Housing Finance Agency (FHFA) regulates:
Fannie Mae, Freddie Mac, and the FHLB
Freddie Mac
Formerly known as the Federal Home Loan Mortgage Corporation; provides secondary mortgage marker
The MOST important role played by Ginnie Mae today is: -Originating FHA loans -Purchasing DVA loans -The oversight of Fannie Mae and Freddie Mac -Guaranteeing mortgage-backed securities payments
Guaranteeing mortgage-backed securities payments
Which of the following types of loans do lenders generally keep in their own investment portfolios rather than sell on the secondary market? -Conventional -Jumbo -Adjustable-rate -Reverse mortgage
Jumbo
Mortgage-Backed Securities
Mortgage pools established by Ginnie Mae that act as collateral for the sale of pass-through securities
When Fannie Mae purchases mortgage loans from lending institutions, they are packaged into:
Mortgage-backed securities
Real Estate Mortgage Investment Conduit (REMIC)
Multiclass securities
Pass-Throughs
Payments on securities sold in the secondary market that are sent directly to the investors
Freddie Mac is a(n):
Secondary market player
Fannie Mae and Freddie Mac are able to replenish their own funds, enabling them to purchase loans from primary lender by: -Borrowing from the Federal Reserve Bank -Borrowing from each other -Requesting grant funds through HUD -Selling mortgage-backed securities
Selling mortgage-backed securities
Federal Housing Finance Agency (FHFA)
Established under the Federal Housing Reform Act of 2007 as an independent agency to regulate the government-sponsored entities (GSE) of Fannie Mae, Freddie Mac, and the Federal Home Loan Bank (FHLB)
Fannie Mae
Formerly the Federal National Mortgage Association; created in 1938 to provide a secondary mortgage market for federally related mortgage loans; now also purchases conventional mortgage loans
Loan Prospector
Freddie Mac's electronic underwriting source
Which of the following agencies is a government-sponsored enterprise? -FNMA -FHA -FHFA -GNMA
GNMA
Which agency guarantees that investors will receive timely payments of principal and interest on mortgage-backed securities backed by the FHA or DVA? -Federal Home Loan Bank -Ginnie Mae -Freddie Mac -Fannie Mae
Ginnie Mae
Which statement regarding Ginnie Mae is TRUE? -Ginnie Mae purchases loans from primary market lenders -Ginnie Mae works with both issuers and investors of mortgage-backed securities -Ginnie Mae is under the supervision of HUD
Ginnie Mae is under the supervision of HUD
Ginnie Mae
Government National Mortgage Association (GNMA); created in 1968 to take over special assistance and liquidation functions of Fannie Mae; participates in the secondary market through its mortgage-backed securities pools
Which of the following statements regarding Fannie Mae guidelines is TRUE? -Loans with a higher than 80% LTV require private mortgage insurance -Maximum loan limits are set annually by each individual lender -The seller may contribute up to 6% towards borrower's closing costs -Homebuyer education and counseling is required of all borrowers
Loans with a higher than 80% LTV require private mortgage insurance
Freddie Mac was originally chartered to: -Compete with Fannie Mae -Provide a secondary market for savings associations -Purchase government loans -Provide mortgage loans for qualified applicants
Provide a secondary market for savings associations
The agency established to ensure the financial safety and soundness of Fannie Mae and Freddie Mac is:
The Federal Housing Finance Agency (FHFA)
Lenders may order either a mandatory or standby commitment to sell loans to Fannie Mae through: -The federal open market -The stock exchange -The free market auction -The administered price system
The administered price system