Chapter 13 Real Estate Financing: Mortgage Marketplaces and Loan Programs
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Questions and Answers

What is the primary role of the secondary mortgage market?

  • To construct new residential properties for sale
  • To provide loans directly to borrowers
  • To purchase loans from lenders and package them into securities (correct)
  • To regulate lending practices and enforce consumer protection laws
  • Which of the following is NOT a government-sponsored enterprise (GSE) in the secondary mortgage market?

  • Federal Deposit Insurance Corporation (FDIC) (correct)
  • Fannie Mae
  • Freddie Mac
  • Ginnie Mae
  • What is the primary purpose of private mortgage insurance (PMI)?

  • To protect lenders against borrower default (correct)
  • To facilitate the securitization of mortgages in the secondary market
  • To regulate lending practices in the primary mortgage market
  • To provide insurance for government-backed loans
  • What is the purpose of the Equal Credit Opportunity Act (ECOA)?

    <p>To prohibit discrimination in lending practices</p> Signup and view all the answers

    What is the purpose of the Real Estate Settlement Procedures Act (RESPA)?

    <p>To require disclosure of settlement costs and prohibit kickbacks</p> Signup and view all the answers

    Which of the following is an example of a loan program that can be a fixed loan or a line of credit?

    <p>Home equity loan</p> Signup and view all the answers

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