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Questions and Answers
What is the main function of the secondary market in real estate?
What is the main function of the secondary market in real estate?
- Creating mortgage loans
- Facilitating home renovations
- Promoting home ownership and investment in real estate (correct)
- Regulating interest rates
How do the underwriting guidelines set by the GSEs impact lenders?
How do the underwriting guidelines set by the GSEs impact lenders?
- Prevent lenders from issuing loans
- Motivate lenders to make loans following these standards (correct)
- Encourage lenders to offer high-interest rates
- Require lenders to invest in stocks
What is a loan called when a lender holds it as part of its own investments until repayment?
What is a loan called when a lender holds it as part of its own investments until repayment?
- Collateralized loan
- Securitized loan
- Secondary loan
- Portfolio loan (correct)
Which type of securities are considerably more liquid than mortgages?
Which type of securities are considerably more liquid than mortgages?
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Who issues mortgage-backed securities?
Who issues mortgage-backed securities?
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Which government-sponsored entity has a greater impact on the mortgage industry than Ginnie Mae?
Which government-sponsored entity has a greater impact on the mortgage industry than Ginnie Mae?
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What did the federal government implement in 2008 to stabilize the GSEs?
What did the federal government implement in 2008 to stabilize the GSEs?
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Why was the Federal Home Loan Mortgage Corporation created?
Why was the Federal Home Loan Mortgage Corporation created?
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What was the original purpose of Freddie Mac?
What was the original purpose of Freddie Mac?
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What are the rules applied when a loan applicant is being qualified by a lender called?
What are the rules applied when a loan applicant is being qualified by a lender called?
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