Podcast
Questions and Answers
What was President Franklin D. Roosevelt's proposed solution to prevent the catastrophe caused by bank failures?
What was President Franklin D. Roosevelt's proposed solution to prevent the catastrophe caused by bank failures?
- Implement stricter regulations on bank lending practices
- Create a federal agency to purchase mortgages from banks (correct)
- Encourage individuals to invest more in the stock market
- Raise interest rates to discourage large withdrawals
In the context of the text, what purpose did the secondary mortgage market serve for banks?
In the context of the text, what purpose did the secondary mortgage market serve for banks?
- Offering lower interest rates to mortgage borrowers
- Increasing the profits of banks through mortgage sales
- Implementing stricter lending criteria for banks
- Providing additional funds for banks to repay customers wanting to withdraw money (correct)
What was the consequence of banks failing and businesses closing during the crisis described in the text?
What was the consequence of banks failing and businesses closing during the crisis described in the text?
- Stock market prices surged due to increased investments
- The federal government nationalized all banks
- Mortgages went unpaid and homes were foreclosed (correct)
- Individuals increased their savings deposits in banks
Why did individuals start withdrawing money from their bank accounts during the crisis?
Why did individuals start withdrawing money from their bank accounts during the crisis?
What did the federal government aim to achieve by purchasing mortgages from banks in the secondary mortgage market?
What did the federal government aim to achieve by purchasing mortgages from banks in the secondary mortgage market?
How did the concept of the secondary mortgage market change the lending practices of banks?
How did the concept of the secondary mortgage market change the lending practices of banks?
Which government agency guarantees timely payment on mortgages backed by the Federal Housing Administration or the Department of Veteran’s Affairs?
Which government agency guarantees timely payment on mortgages backed by the Federal Housing Administration or the Department of Veteran’s Affairs?
What was the main purpose behind creating the Federal Home Loan Mortgage Corporation (Freddie Mac) in 1970?
What was the main purpose behind creating the Federal Home Loan Mortgage Corporation (Freddie Mac) in 1970?
In the Secondary Mortgage Market, which entity was designed to purchase single-family mortgages?
In the Secondary Mortgage Market, which entity was designed to purchase single-family mortgages?
Which government agency operates under the Department of Housing and Urban Development (HUD)?
Which government agency operates under the Department of Housing and Urban Development (HUD)?
When did the Department of Housing and Urban Development (HUD) become a cabinet-level department?
When did the Department of Housing and Urban Development (HUD) become a cabinet-level department?
What were the two main goals of the 'Great Society' social reforms?
What were the two main goals of the 'Great Society' social reforms?
What governmental agency was created to guarantee payment on passbook accounts?
What governmental agency was created to guarantee payment on passbook accounts?
Which act passed in 1934 aimed at improving the mortgage market?
Which act passed in 1934 aimed at improving the mortgage market?
What impact did Fannie Mae have on the mortgage market?
What impact did Fannie Mae have on the mortgage market?
Why did banks start following Fannie Mae's procedures and policies?
Why did banks start following Fannie Mae's procedures and policies?
What change occurred in 1968 with regards to agencies like Fannie Mae?
What change occurred in 1968 with regards to agencies like Fannie Mae?
Why did Fannie Mae become profitable according to the text?
Why did Fannie Mae become profitable according to the text?
What is the main purpose of HUD in real estate financing?
What is the main purpose of HUD in real estate financing?
Which institution is commonly referred to as 'The Fed'?
Which institution is commonly referred to as 'The Fed'?
What was one of the actions taken by the Federal Reserve Board in the early 1990s?
What was one of the actions taken by the Federal Reserve Board in the early 1990s?
Which legislation governs real estate financing and requires specific information for borrowers?
Which legislation governs real estate financing and requires specific information for borrowers?
What action did the Federal Reserve Board take in 2008 related to stabilizing the housing market?
What action did the Federal Reserve Board take in 2008 related to stabilizing the housing market?
In real estate financing, what does the Truth in Lending Act require borrowers to be given?
In real estate financing, what does the Truth in Lending Act require borrowers to be given?
What is the main purpose of the Truth in Lending Act disclosures?
What is the main purpose of the Truth in Lending Act disclosures?
Which legislation prohibits credit discrimination based on various factors like race and marital status?
Which legislation prohibits credit discrimination based on various factors like race and marital status?
Who enforces the Equal Credit Opportunity Act (ECOA) and looks for patterns of discriminatory lending practices?
Who enforces the Equal Credit Opportunity Act (ECOA) and looks for patterns of discriminatory lending practices?
What is the primary goal of the Fair Credit Reporting Act (FCRA)?
What is the primary goal of the Fair Credit Reporting Act (FCRA)?
What aspect of loan products does the Real Estate Settlement Procedures Act (RESPA) instruct lenders to disclose?
What aspect of loan products does the Real Estate Settlement Procedures Act (RESPA) instruct lenders to disclose?
What type of information must mortgage borrowers receive according to the Real Estate Settlement Procedures Act (RESPA)?
What type of information must mortgage borrowers receive according to the Real Estate Settlement Procedures Act (RESPA)?
