Practice: Chapter 11 • Real Estate Financing
Study this set o nline at: https://www.cram.co m/flashcards/practice-chapter-11-real-
estate-financing-22379 0 6
Si nce the 1980s, apprai sers must be __ by the government. l i censed
M oney f or l oans comes f rom 1) peopl e who saved thei r money, 2) money deposi ted
escrow
i nto __.
T he f i rst l i en to record i s the f i rst to get repai d i n a __. f orecl osure
F anni e M ae, f ormerl y the F ederal __ M ortgage Associ ati on (__), was establ i shed
to sti mul ate the secondary mortgage market by buyi ng Veterans Af f ai rs (VA)-
guaranteed l oans and F ederal H ousi ng Admi ni strati on (F H A)-i nsured l oans made N ati onal F N M A
by pri vate l enders. F anni e M ae evol ved i nto a pri vate, prof i t-ori ented corporati on
thatmarkets i ts own securi ti es
, Practice: Chapter 11 • Real Estate Financing
Study this set o nline at: https://www.cram.co m/flashcards/practice-chapter-11-real-
estate-financing-22379 0 6
Gi nni e M ae, T he Government __ M ortgage Associ ati on (__) deal s i n hi gher-ri sk,
N ati onal GN M A
but i mportant programs such as l ow-i ncome housi ng.
F reddi e M ac, f ormerl y the F ederal H ome Loan M ortgage __ (F H LM C), was
f ounded by the savi ngs and l oan (S&L) associ ati ons. T oday, they buy l oans that Corporati on one
have been cl osed wi thi n __ year at speci f i ed di scount rates.
Loans that are kept by the l ender (not sol d) are cal l ed __ l oans. portf ol i o
Conf ormi ng l oans are conventi onal l oans that meet the underwri ti ng standards f or
purchase by F anni e M ae or F reddi e M ac. T hese are ei ther f i f teen-year or thi rty-
gui del i nes
year l oans and are not assumabl e. T hey have stri ct __regardi ng down payments and
maxi mum l oan amounts.
, Practice: Chapter 11 • Real Estate Financing
Study this set o nline at: https://www.cram.co m/flashcards/practice-chapter-11-real-
estate-financing-22379 0 6
Because of the stri ct underwri ti ng requi rements they must meet, the i nterest rates
nonconf ormi ng
f or conf ormi ng l oans are general l y l ess than rates charged f or __ l oans.
Another reason j umbo l oans usual l y carry a hi gher i nterest rate i s that they must be
hel d or warehoused unti l the l ender has accumul ated a __ dol l ar portf ol i o of mul ti mi l l i on
them.
I nsti tuti onal l enders are commerci al banks, savi ngs __, l i f e i nsurance compani es,
associ ati ons
or any l endi ng i nsti tuti on whose acti vi ti es are regul ated by l aw.
T he homeowner may request to cancel the PM I when she can produce an apprai sal
showi ng that the l oan bal ance i s l ess than 75–80 percent of the property’s val ue,
24
there has not been a l ate payment i n the pri or year, and PM I i s past a mi ni mum of
__ months.
Study this set o nline at: https://www.cram.co m/flashcards/practice-chapter-11-real-
estate-financing-22379 0 6
Si nce the 1980s, apprai sers must be __ by the government. l i censed
M oney f or l oans comes f rom 1) peopl e who saved thei r money, 2) money deposi ted
escrow
i nto __.
T he f i rst l i en to record i s the f i rst to get repai d i n a __. f orecl osure
F anni e M ae, f ormerl y the F ederal __ M ortgage Associ ati on (__), was establ i shed
to sti mul ate the secondary mortgage market by buyi ng Veterans Af f ai rs (VA)-
guaranteed l oans and F ederal H ousi ng Admi ni strati on (F H A)-i nsured l oans made N ati onal F N M A
by pri vate l enders. F anni e M ae evol ved i nto a pri vate, prof i t-ori ented corporati on
thatmarkets i ts own securi ti es
, Practice: Chapter 11 • Real Estate Financing
Study this set o nline at: https://www.cram.co m/flashcards/practice-chapter-11-real-
estate-financing-22379 0 6
Gi nni e M ae, T he Government __ M ortgage Associ ati on (__) deal s i n hi gher-ri sk,
N ati onal GN M A
but i mportant programs such as l ow-i ncome housi ng.
F reddi e M ac, f ormerl y the F ederal H ome Loan M ortgage __ (F H LM C), was
f ounded by the savi ngs and l oan (S&L) associ ati ons. T oday, they buy l oans that Corporati on one
have been cl osed wi thi n __ year at speci f i ed di scount rates.
Loans that are kept by the l ender (not sol d) are cal l ed __ l oans. portf ol i o
Conf ormi ng l oans are conventi onal l oans that meet the underwri ti ng standards f or
purchase by F anni e M ae or F reddi e M ac. T hese are ei ther f i f teen-year or thi rty-
gui del i nes
year l oans and are not assumabl e. T hey have stri ct __regardi ng down payments and
maxi mum l oan amounts.
, Practice: Chapter 11 • Real Estate Financing
Study this set o nline at: https://www.cram.co m/flashcards/practice-chapter-11-real-
estate-financing-22379 0 6
Because of the stri ct underwri ti ng requi rements they must meet, the i nterest rates
nonconf ormi ng
f or conf ormi ng l oans are general l y l ess than rates charged f or __ l oans.
Another reason j umbo l oans usual l y carry a hi gher i nterest rate i s that they must be
hel d or warehoused unti l the l ender has accumul ated a __ dol l ar portf ol i o of mul ti mi l l i on
them.
I nsti tuti onal l enders are commerci al banks, savi ngs __, l i f e i nsurance compani es,
associ ati ons
or any l endi ng i nsti tuti on whose acti vi ti es are regul ated by l aw.
T he homeowner may request to cancel the PM I when she can produce an apprai sal
showi ng that the l oan bal ance i s l ess than 75–80 percent of the property’s val ue,
24
there has not been a l ate payment i n the pri or year, and PM I i s past a mi ni mum of
__ months.
