30 Questions
What was President Franklin D. Roosevelt's proposed solution to prevent the catastrophe caused by bank failures?
Create a federal agency to purchase mortgages from banks
In the context of the text, what purpose did the secondary mortgage market serve for banks?
Providing additional funds for banks to repay customers wanting to withdraw money
What was the consequence of banks failing and businesses closing during the crisis described in the text?
Mortgages went unpaid and homes were foreclosed
Why did individuals start withdrawing money from their bank accounts during the crisis?
Due to fear and panic spreading across the nation
What did the federal government aim to achieve by purchasing mortgages from banks in the secondary mortgage market?
Provide banks with additional funds for liquidity
How did the concept of the secondary mortgage market change the lending practices of banks?
Allowed banks to have more liquidity by selling mortgages to the government
Which government agency guarantees timely payment on mortgages backed by the Federal Housing Administration or the Department of Veteran’s Affairs?
Government National Mortgage Association (Ginnie Mae)
What was the main purpose behind creating the Federal Home Loan Mortgage Corporation (Freddie Mac) in 1970?
To purchase single-family mortgages
In the Secondary Mortgage Market, which entity was designed to purchase single-family mortgages?
Freddie Mac
Which government agency operates under the Department of Housing and Urban Development (HUD)?
Ginnie Mae
When did the Department of Housing and Urban Development (HUD) become a cabinet-level department?
1965
What were the two main goals of the 'Great Society' social reforms?
Elimination of poverty and racial injustice
What governmental agency was created to guarantee payment on passbook accounts?
Federal Deposit Insurance Corporation
Which act passed in 1934 aimed at improving the mortgage market?
National Housing Act
What impact did Fannie Mae have on the mortgage market?
Increased mortgage liquidity
Why did banks start following Fannie Mae's procedures and policies?
In order to sell mortgages to Fannie Mae
What change occurred in 1968 with regards to agencies like Fannie Mae?
They were authorized to become private, for-profit businesses
Why did Fannie Mae become profitable according to the text?
$50,000 mortgage was bought for $80,000 immediately
What is the main purpose of HUD in real estate financing?
Ensuring fair housing practices
Which institution is commonly referred to as 'The Fed'?
Federal Reserve System
What was one of the actions taken by the Federal Reserve Board in the early 1990s?
Buying back corporate bonds and mortgage-backed securities
Which legislation governs real estate financing and requires specific information for borrowers?
Federal Truth in Lending Laws
What action did the Federal Reserve Board take in 2008 related to stabilizing the housing market?
$1.25 trillion in total government-backed mortgages were purchased
In real estate financing, what does the Truth in Lending Act require borrowers to be given?
Information to make informed borrowing decisions
What is the main purpose of the Truth in Lending Act disclosures?
To ensure lenders provide clear information about key terms of lending agreements
Which legislation prohibits credit discrimination based on various factors like race and marital status?
Equal Credit Opportunity Act (ECOA)
Who enforces the Equal Credit Opportunity Act (ECOA) and looks for patterns of discriminatory lending practices?
Department of Justice (DOJ)
What is the primary goal of the Fair Credit Reporting Act (FCRA)?
To promote accuracy, fairness, and privacy of information in consumer reporting agency files
What aspect of loan products does the Real Estate Settlement Procedures Act (RESPA) instruct lenders to disclose?
The unique features of the loan products and methods of loan servicing
What type of information must mortgage borrowers receive according to the Real Estate Settlement Procedures Act (RESPA)?
Details about the estimated charges they will incur when taking on a mortgage
Explore the consequences of the Secondary Mortgage Market in a historical context, including bank failures, loss of savings, business closures, and home foreclosures. Learn about the events that led to a national panic and the intervention of President Franklin D. Roosevelt.
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