Real Estate Principles II - Level 3 Financing

Mike is talking to a lender directly about getting a loan, he is participating in the:

• Primary Mortgage Market

• Secondary Mortgage Market

Mortgage loans are bundled and sold to investors on the:

• Primary Mortgage Market

• Secondary Mortgage Market

The vast majority of mortgage loans that are created in the primary mortgage market are bundled and sold to what is known as the ______________

• Primary Mortgage Market

• Secondary Mortgage Market

The place where mortgages are bought and sold.

• Primary Mortgage Market

• Secondary Mortgage Market

(GSE) Government Sponsored Enterprise but not owned by the government (Two are correct).

• • Fannie Mae: Federal National Mortgage Association (FNMA)

• • Freddie Mac: Federal Home Loan Mortgage Corporation (FHLMC)

• • Ginnie Mae: Government National Mortgage Association (GNMA)

A government-owned entity that supports the secondary mortgage market by guaranteeing mortgage-backed securities (MBSs) insured by the U.S. government

• • Fannie Mae: Federal National Mortgage Association (FNMA)

• • Freddie Mac: Federal Home Loan Mortgage Corporation (FHLMC)

• • Ginnie Mae: Government National Mortgage Association (GNMA)

A government-sponsored enterprise created in 1970 to further support the secondary mortgage market, and specifically, to support smaller thrift banks

• • Fannie Mae: Federal National Mortgage Association (FNMA)

• • Freddie Mac: Federal Home Loan Mortgage Corporation (FHLMC)

• • Ginnie Mae: Government National Mortgage Association (GNMA)

The Federal Home Loan Bank System (FHLBank System) was designed to serve as a reserve credit system to support housing finance and provide relief to troubled homeowners and lending institutions. It consists of __member banks.

• 9

• 10

• 11

• 12

Asset-backed securities, where the underlying asset is a single mortgage or a bundle of mortgages that serve to back the securities

• mortgage-backed securities

• amortization

• non-conforming loan

• Fannie Mae

__________ is the first step a borrower takes in applying for a loan (no credit check)

• Pre-qualification

• Pre-approval