Mortgage Loan Originator UPDATED Exam Questions and CORRECT Answers

Index and margin - What is used to determine the interest rate chang on an ARM? A loan with a balloon payment provision - Which of the following loan types is best described as a loan with a payment schedule made up of a series of small periodic payments and a larger lump sum due upon maturity? Convention/conforming loans - Fannie Mae and Freddie Mac securitize what type of mortgage loans? FHA Loans - Which of the following types of loans offers backing from the federal government without using taxpayer dollars To replenish lenders funds for new loans by purchasing loans that lenders have already funded and closed. - What is Fannie Mae's primary function in the secondary market? Most lending transactions other than those for reverse mortgages and open-ended loans - The ability to repay rule applies to