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Questions and Answers
What is the primary role of the secondary mortgage market?
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?
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)?
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)?
What is the purpose of the Equal Credit Opportunity Act (ECOA)?
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What is the purpose of the Real Estate Settlement Procedures Act (RESPA)?
What is the purpose of the Real Estate Settlement Procedures Act (RESPA)?
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Which of the following is an example of a loan program that can be a fixed loan or a line of credit?
Which of the following is an example of a loan program that can be a fixed loan or a line of credit?
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