BASIC APPRAISAL PRINCIPLESCHAPTER 11 EXAM | WITH 100% CORRECT ANSWERS | GRADED +

From the 1930s through the 196 The primary sources of mortgage capital were: ANSWER: • State or federally chartered savings banks • Savings and loan institutions • Commercial banks • Credit unions Savings banks are ANSWER: either mutual or stockholder owned. Most savings and loan institutions were chartered primarily to ANSWER: provide residential mortgages for the local areas. Their purpose was to receive savings, loan money at interest, and distribute dividends to depositors. Commercial banks are ANSWER: privately owned institutions that were obviously oriented towards business loans but dabbled in residential loans. Their interests were usually short term, but they supplied loans for construction and development. Credit unions: ANSWER: primarily loaned to their members. Later, many opened their doors to all borrowers. banks wanted to loan out funds for mortgages, the sources were limited to: ANSWER: • Depositors • Sale of stock or shares of ownership in the bank or thrift • Repayment of existing mortgages • Borrowing of funds from the Federal Reserve The secondary mortgage market is defined as: ANSWER: "A market created by government and private agencies for the purchase and sale of existing mortgages, which provides greater liquidity for mortgages. Fannie Mae, Freddie Mac, and Ginnie Mae are the principal operators in the secondary mortgage market." The Federal National Mortgage Association (FNMA) ANSWER: was created in 1938 to purchase FHA insured loan