Principles of Real Estate II (ACEABLE AGENT) - Level 3 Real Estate Financing Principles Questions & Answers 100% Correct!

Primary Mortgage Market - ANSWERSthe arena in which borrowers and lenders meet up for the purposes of negotiating loan terms of mortgage transaction Secondary Mortgage Market - ANSWERSthe marketplace where home loans and their servicing rights are bought and sold between lending institutions (that originated the loans) and investors Government-Sponsored Enterprises - ANSWERSpublicly traded institutions that were created by Congress to provide liquidity, stability, and affordability to the mortgage market Federal Agricultural Mortgage Corporation - ANSWERSa government-sponsored enterprise (GSE) providing a secondary market for agricultural and rural mortgage loans; also know as Farmer Mac Depository Lenders - ANSWERSinstitutions that make mortgage loans from funds derived from their customers' savings accounts Savings Associations - ANSWERSspecialize in long-term residential loans; primary function is to promote thrift and home ownership Federal Home Loan Bank System - ANSWERSeleven private, wholesale regional U.S. banks chartered to regulate member organizations, set reserve requirements, establish discount rates, and provide insurance for depositors Federal Deposit insurance Corporation (FDIC) - ANSWERScreated by Congress in 1933 to insure deposits, supervise financial institutions,k make large financial institutions resolvable, and manage receiverships Commercial Banks - ANSWERSdesigned to be safe depositories and lenders for multitude of commercial banking activities, relying mainly on demand deposits (checking accounts) for their basic supply of funds. Credit Unions - ANSWERSprovide members with a source of funding for personal property and, more recently, real estate mortgage loans Savings Banks - ANSWERSplay an active and important role in local real estate financing activities, providing long-term mortgage loans with funds derived from customer savings accounts Life Insurance Companies - ANSWERSprefer investments in large projects such as shopping centers as opposed to smaller loans for home mortgages and construction loans