MAC- MAE- MATH
Which of the following is NOT a participant in the secondary market? - answer The
answer is credit union. A credit union makes mortgage loans to its members and is part
of the primary mortgage market. Fannie Mae and Freddie Mac purchase packages of
loans on the secondary market, and Ginnie Mae guarantees mortgage-backed
securities created in the secondary market.
Fannie Mae, Freddie Mac, and Ginnie Mae are the major participants in the national
market for real estate mortgages. They, and other groups of investors, are collectively
known as the - answer The answer is secondary market. This market provides an outlet
for the loans being packaged and sold by the primary market.
In 2014, a new cycle in mortgage lending began, characterized by - answer The answer
is the percentage of conventional loans sold to Fannie Mae and Freddie Mac beginning
to rise. After Fannie and Freddie were forced into conservatorship, more borrowers
turned to the FHA (80% of the market in 2012). By 2014, more private investment was
returning to the real estate financing market.
Which agencies was the U.S. Treasury instrumental in establishing, directly impacting
the secondary market? - answer The answer is Fannie Mae and Ginnie Mae.
Historically, the U.S. Treasury has assumed a continuing role as supplier of funds from
practically all federal agencies. This role makes the U.S. Treasury a primary contributor
to the success of many important national programs for real estate financing, like
participating in the creation of Fannie Mae and Ginnie Mae.
HUD is directly responsible for which of the following? - answerThe answer is Federal
Housing Administration (FHA). One of HUD's primary duties is to supervise the FHA.
HUD is also responsible for the Government National Mortgage Association (Ginnie
Mae), in addition to administering a variety of housing programs focused on social
improvement, including low-rent housing projects, urban renewal, and rehabilitation
programs.
The secondary market for agricultural and rural housing mortgage loans was created by
Congress and is known as - answerThe answer is Farmer Mac. Through the Farmer
Mac 1 Program, Farmer Mac purchases qualified loans from agricultural mortgage
lenders to replenish the lenders' source of funds to make new loans. Loans are then
packaged and sold as securities.
In 1954, Fannie Mae was rechartered as a national secondary mortgage market
clearinghouse to be financed by - answerThe answer is private capital. The agency was
empowered to sell its mortgages, as well as purchase new FHA and VA loans. Fannie
, Mae also created its own criteria for accepting mortgages that meet its standards for
quality, yield, and risk.
Fannie Mae and Freddie Mac remain in conservatorship today under - answerThe
answer is the Federal Housing Finance Agency (FHFA). When the housing market
crashed, Fannie Mae and Freddie Mac were in serious trouble. They were both placed
in conservatorship under the FHFA in 2008.
Which of the government-sponsored enterprises (GSEs) was cited by the FHFA as
having emerged from the recent financial crisis in generally good condition and is now
profitable with increasing annual earnings? - answerThe answer is the FHLB. The FHLB
is now regulated by the FHFA, receiving praise for having successfully recovered from
the financial crisis.
Ginnie Mae mortgage-backed securities are fully modified pass-through securities
guaranteed by - answerThe answer is the full faith and credit of the U.S. government.
Many investors in the international market assumed that all mortgages sold on the
secondary market were like Ginnie Mae mortgage-backed securities with the full faith
and credit of the U.S. government, which meant if the loans were not performing, the
government would intercede. This is one of the reasons the government had to
intervene in the mortgage crisis.
Fannie Mae's automated underwriting system for independent mortgage broker-agents
is called - answerThe answer is Desktop Originator® (DO). Fannie Mae has two
versions of its automated underwriting system—the DO is for independent mortgage
broker-agents, and the DU is for lender servicers. Lenders access Fannie Mae's loan
analysis system through software offered to customers.
Participation certificates (PCs) are packages of mortgages that meet specific guidelines
that are sold to investors in the secondary market by which entity? - answerThe answer
is Freddie Mac. PCs are another name for mortgage-backed securities sold by Freddie
Mac. Freddie Mac raises additional funds by selling these mortgage-backed securities.
Which of the following statements regarding Fannie Mae's administered price system is
FALSE? - answerThe answer is lenders place orders to sell under a free-market-system
auction. The auction was the earlier system for the purchase of loans by Fannie Mae.
Under the administered price system, Fannie Mae adjusts its required yields daily in
accordance with market factors and its financial needs.
All of the following are the major players in the mortgage secondary market EXCEPT -
answerThe answer is Federal Housing Administration. The Federal Housing
Administration (FHA) is part of the primary market.
When Fannie Mae was first organized to purchase FHA loans, these loans were
purchased at - answerThe answer is par. A purchase at par means at full face value,
Which of the following is NOT a participant in the secondary market? - answer The
answer is credit union. A credit union makes mortgage loans to its members and is part
of the primary mortgage market. Fannie Mae and Freddie Mac purchase packages of
loans on the secondary market, and Ginnie Mae guarantees mortgage-backed
securities created in the secondary market.
Fannie Mae, Freddie Mac, and Ginnie Mae are the major participants in the national
market for real estate mortgages. They, and other groups of investors, are collectively
known as the - answer The answer is secondary market. This market provides an outlet
for the loans being packaged and sold by the primary market.
In 2014, a new cycle in mortgage lending began, characterized by - answer The answer
is the percentage of conventional loans sold to Fannie Mae and Freddie Mac beginning
to rise. After Fannie and Freddie were forced into conservatorship, more borrowers
turned to the FHA (80% of the market in 2012). By 2014, more private investment was
returning to the real estate financing market.
Which agencies was the U.S. Treasury instrumental in establishing, directly impacting
the secondary market? - answer The answer is Fannie Mae and Ginnie Mae.
Historically, the U.S. Treasury has assumed a continuing role as supplier of funds from
practically all federal agencies. This role makes the U.S. Treasury a primary contributor
to the success of many important national programs for real estate financing, like
participating in the creation of Fannie Mae and Ginnie Mae.
HUD is directly responsible for which of the following? - answerThe answer is Federal
Housing Administration (FHA). One of HUD's primary duties is to supervise the FHA.
HUD is also responsible for the Government National Mortgage Association (Ginnie
Mae), in addition to administering a variety of housing programs focused on social
improvement, including low-rent housing projects, urban renewal, and rehabilitation
programs.
The secondary market for agricultural and rural housing mortgage loans was created by
Congress and is known as - answerThe answer is Farmer Mac. Through the Farmer
Mac 1 Program, Farmer Mac purchases qualified loans from agricultural mortgage
lenders to replenish the lenders' source of funds to make new loans. Loans are then
packaged and sold as securities.
In 1954, Fannie Mae was rechartered as a national secondary mortgage market
clearinghouse to be financed by - answerThe answer is private capital. The agency was
empowered to sell its mortgages, as well as purchase new FHA and VA loans. Fannie
, Mae also created its own criteria for accepting mortgages that meet its standards for
quality, yield, and risk.
Fannie Mae and Freddie Mac remain in conservatorship today under - answerThe
answer is the Federal Housing Finance Agency (FHFA). When the housing market
crashed, Fannie Mae and Freddie Mac were in serious trouble. They were both placed
in conservatorship under the FHFA in 2008.
Which of the government-sponsored enterprises (GSEs) was cited by the FHFA as
having emerged from the recent financial crisis in generally good condition and is now
profitable with increasing annual earnings? - answerThe answer is the FHLB. The FHLB
is now regulated by the FHFA, receiving praise for having successfully recovered from
the financial crisis.
Ginnie Mae mortgage-backed securities are fully modified pass-through securities
guaranteed by - answerThe answer is the full faith and credit of the U.S. government.
Many investors in the international market assumed that all mortgages sold on the
secondary market were like Ginnie Mae mortgage-backed securities with the full faith
and credit of the U.S. government, which meant if the loans were not performing, the
government would intercede. This is one of the reasons the government had to
intervene in the mortgage crisis.
Fannie Mae's automated underwriting system for independent mortgage broker-agents
is called - answerThe answer is Desktop Originator® (DO). Fannie Mae has two
versions of its automated underwriting system—the DO is for independent mortgage
broker-agents, and the DU is for lender servicers. Lenders access Fannie Mae's loan
analysis system through software offered to customers.
Participation certificates (PCs) are packages of mortgages that meet specific guidelines
that are sold to investors in the secondary market by which entity? - answerThe answer
is Freddie Mac. PCs are another name for mortgage-backed securities sold by Freddie
Mac. Freddie Mac raises additional funds by selling these mortgage-backed securities.
Which of the following statements regarding Fannie Mae's administered price system is
FALSE? - answerThe answer is lenders place orders to sell under a free-market-system
auction. The auction was the earlier system for the purchase of loans by Fannie Mae.
Under the administered price system, Fannie Mae adjusts its required yields daily in
accordance with market factors and its financial needs.
All of the following are the major players in the mortgage secondary market EXCEPT -
answerThe answer is Federal Housing Administration. The Federal Housing
Administration (FHA) is part of the primary market.
When Fannie Mae was first organized to purchase FHA loans, these loans were
purchased at - answerThe answer is par. A purchase at par means at full face value,
