Champions Real Estate Finance Questions And Answers 100% Correct!

Federal National Mortgage Association (FNMA) known as, Fannie Mae - ANSWERSbegan in 1938 as an agency of the federal government In 1968, Fannie Mae became a privately owned and managed corporation Fannie Mae operates exclusively in the secondary market and provides support to mortgage lending institutions in the primary market. Freddie Mac is a federally chartered corporation established as the Federal Home Loan Mortgage Corporation (FHLMC) - ANSWERSin 1970 for the purpose of purchasing mortgages in the secondary market. Freddie Mac is a stockholder-owned corporation chartered by Congress to increase the supply of funds that mortgage lenders, such as commercial banks, mortgage bankers, savings institutions and credit unions can make available to homeowners and multi-family investors. Most of its listed stock is owned by savings associations. Housing and Economic Recovery Act (HERA) - ANSWERSwas enacted on July 30, 2008. HERA created the Federal Housing Finance Agency (FHFA) as the successor agency to the Office of Federal Housing Enterprise Oversight and the Federal Housing Finance Board. The Office of Federal Housing Enterprise Oversight had been established in 1992 to regulate Fannie Mae and Freddie Mac. On September 7, 2008, the Federal Housing Finance Agency (FHFA) ...... - ANSWERSplaced Fannie Mae and Freddie Mac in conservatorship. As conservator, the FHFA has taken over the assets and assumed all the powers of the shareholders, directors, and officers. It may take any necessary action to restore the firms to a sound and solvent condition. Stockholders' voting rights are suspended during the conservatorship, and both firms' CEOs have been replaced. Dividends on common and preferred stock have been suspended, although the shares continue to trade. GSE business operations will continue as before; the conservator will delegate authority to the companies' new management to move forward. The conservatorship will end when the FHFA finds that a safe and solvent condition has been restored The Government National Mortgage Association (GNMA), or Ginnie Mae - ANSWERS, was established in the United States in 1968 to promote home ownership. It is a wholly-owned government association that operates a mortgage-backed securities program designed to facilitate the flow of capital into the housing industry. ____approved private institutions issue mortgage-backed securities with payments that are guaranteed even if borrowers or issuers default on their obligations. ___ securities are the only mortgage backed securities (MBS) to carry the full faith and credit guaranty of the United States Government, The Federal Agricultural Mortgage Corporation (Farmer Mac) - ANSWERSis a government-sponsored enterprise with the mission of providing a secondary market for agricultural real estate mortgage loans, rural housing mortgage loans, and rural utility cooperative loans. Congress established _____in the Agricultural Credit Act of 1987. Farmer Mac I - ANSWERSpurchases, or commits to purchase, qualified agricultural or rural housing mortgage loans, or obligations backed by qualified loans. Farmer Mac II - ANSWERSpurchases the portions of qualified loans that are guaranteed by the U.S. Department of Agriculture front ratio - ANSWERSis used to qualify a borrower for a loan based upon the proposed house payment and his or her gross monthly income (GMI). The house payment is the monthly payment of principal, interest, taxes and insurance (PITI). In conventional