5.4 Loan Qualifying and Markets

Which of the following is NOT part of the secondary market?

• fannie mae

• federal housing administration

• ginnie mae

• freddie mac

The secondary mortgage market is an area of activity where:

• existing mortgages are bought and sold

• second and other junior mortgages are made

• borrowers may get loans if not qualified in the primary market

• purchase money mortgages are originated

Mortgage bankers typically make loans in the:

• money market

• primary market

• secondary market

• stock market

A buyer assumes and FHA mortgage. The seller does NOT want to remain liable. What action can the seller take?

• get a written agreement from the buyer

• get a written release from the lender

• novate the mortgage

• assign the mortgage

The primary mortgage market is best defined as where:

• first and second mortgages are originated

• first mortgages are sold

• mortgages are bought and sold

• federally subsidized mortgages are sold

When a lender reviews a credit score for a borrower, the score tells the lender if the:

• a borrower has sufficient credit

• loan will be a mortgage or a deed of trust

• adjustable rate loan will have a cap

• loan will have a prepayment pentaly

When a listing agent is selling a property using a seller carryback, the agent should be most concerned with:

• clear title

• the buyer's income

• the seller's financial status

• listing price

Fannie Mae and Freddie Mac do NOT:

• sell loans

• sell bonds secured by mortgages

• buy conventional loans

• originiate FHA and VA loans