Unit 4. The Secondary Mortgage Market
Fannie Mae's newest affordable loan product is called – answer HomeReady®.
Steps taken by the U.S. Treasury Department as part of the Fannie Mae and Freddie
Mac bailout included all of the following EXCEPT - answer The answer is closing of all
Fannie Mae and Freddie Mac offices. All offices were not closed, although there were
changes in management. By 2017, the bailout appeared to have been paid back with
interest.
Ginnie Mae mortgage-backed securities are pools of mortgages used as collateral for
the issuance of securities, commonly called - answer The answer is pass-through
certificates. These are called pass-through certificates because the principal and
interest payments are "passed through" to the investors.
When Fannie Mae was reorganized in 1954 to include financing by private investors,
mortgage loans could be purchased at - answer The answer is a discount. In 1954,
Fannie Mae was rechartered as a national secondary mortgage market clearinghouse
to be financed by private capital. Fannie Mae was empowered to sell its mortgages, as
well as purchase new FHA and VA loans. Fannie Mae's purchases were no longer
made at par but at whatever discounted price would develop a reasonable rate of
return.
When Fannie Mae was reorganized, it became a separate privately owned corporation
subject to - answerAlaska
Fannie Mae and Freddie Mac are both called government-sponsored enterprises
because they retain the benefit of government sponsorship, which includes - answera
line of credit with the U.S. Treasury.
A couple making a 5% down payment on the purchase of a new home for $150,000 will
be allowed to have a seller contribution of - answerThe answer is $4,500. Fannie Mae
guidelines allow for a 3% of sales price contribution from a seller with a 5% down
payment. With a 10% down payment, the contribution can be up to 10% of the sales
price.
Freddie Mac was originally chartered to do which of the following? - answerProvide a
secondary market for conventional loans
Other lesser-known participants in the secondary market include all of the following
EXCEPT - answerThe answer is the Federal Housing Administration (FHA). The FHA
insures mortgage loans that are then sold in packages to Fannie Mae or Freddie Mac.
Fannie Mae's newest affordable loan product is called – answer HomeReady®.
Steps taken by the U.S. Treasury Department as part of the Fannie Mae and Freddie
Mac bailout included all of the following EXCEPT - answer The answer is closing of all
Fannie Mae and Freddie Mac offices. All offices were not closed, although there were
changes in management. By 2017, the bailout appeared to have been paid back with
interest.
Ginnie Mae mortgage-backed securities are pools of mortgages used as collateral for
the issuance of securities, commonly called - answer The answer is pass-through
certificates. These are called pass-through certificates because the principal and
interest payments are "passed through" to the investors.
When Fannie Mae was reorganized in 1954 to include financing by private investors,
mortgage loans could be purchased at - answer The answer is a discount. In 1954,
Fannie Mae was rechartered as a national secondary mortgage market clearinghouse
to be financed by private capital. Fannie Mae was empowered to sell its mortgages, as
well as purchase new FHA and VA loans. Fannie Mae's purchases were no longer
made at par but at whatever discounted price would develop a reasonable rate of
return.
When Fannie Mae was reorganized, it became a separate privately owned corporation
subject to - answerAlaska
Fannie Mae and Freddie Mac are both called government-sponsored enterprises
because they retain the benefit of government sponsorship, which includes - answera
line of credit with the U.S. Treasury.
A couple making a 5% down payment on the purchase of a new home for $150,000 will
be allowed to have a seller contribution of - answerThe answer is $4,500. Fannie Mae
guidelines allow for a 3% of sales price contribution from a seller with a 5% down
payment. With a 10% down payment, the contribution can be up to 10% of the sales
price.
Freddie Mac was originally chartered to do which of the following? - answerProvide a
secondary market for conventional loans
Other lesser-known participants in the secondary market include all of the following
EXCEPT - answerThe answer is the Federal Housing Administration (FHA). The FHA
insures mortgage loans that are then sold in packages to Fannie Mae or Freddie Mac.
