REAL FINAL EXAM QUESTIONS
CORRECTLY ANSWERED [100%
A+]
The mqfederal mqagency mqthat mqwas mqcreated mqin mq1934 mqin mqorder mqto mqrestore
mqconfidence mqin mqthe mqmortgage mqmarket mqand mqtoday mqacts mqprimarily mqas mqa
mqmortgage mqinsurance mqcompany mqfor mqprivate mqlenders mqis:
A. mqFannie mqMae
B. mqThe mqFederal mqHousing mqAdministration
c. mqFreddie mqMac
d. mqGinnie mqMae mq- mqCorrect mq mqAnswer mq✔✔ mq- mqThe mqFederal mqHousing
mqAdministration
Interest-only mqloans mqare mqconsidered mqto mqbe mq_____________-amortizing mqloans.
a. mqfully
b. mqnegatively
c. mqnon
d. mqpartially mq- mqCorrect mq mqAnswer mq✔✔ mq- mqNon
The mqmortgage mqclause mqthat mqallows mqa mqlender mqto mqdemand mqimmediate
mqrepayment mqof mqall mqof mqa mqloan's mqoutstanding mqprincipal mqeven mqif mqthe
mqborrower mqhasn't mqdefaulted mqis mqknown mqas mqthe:
a. mqacceleration mqclause
b. mqdemand mqclause
c. mqescrow mqclause
d. mqrecourse mqclause mq- mqCorrect mq mqAnswer mq✔✔ mq- mqDemand mqClause
Which mqONE mqof mqthe mqfollowing mqbest mqdescribes mqthe mqroute mqthat mqthe mqU.S.
mqgovernment mqhas mqtaken mqin mqreforming mqFannie mqMae mqand mqFreddie mqMac
mqin mqorder mqto mqavoid mqa mqrepeat mqof mqthe mqrecent mqbailout?
a. mqThe mqgovernment mqhas mqnot mqyet mqdecided mqhow mqthey mqare mqgoing mqto mqbe
mqreformed
b. mqThey mqhave mqbeen mqabolished
c. mqThey mqhave mqbeen mqprivatized
,d. mqThey mqwill mqact mqas mqinsurers mqfor mqprivate mqlenders mq- mqCorrect mq mqAnswer
mq✔✔ mq- mqThe mqgovernment mqhas mqnot mqyet mqdecided mqhow mqthey mqare mqgoing
mqto mqbe mqreformed
Which mqONE mqof mqthe mqfollowing mqin mqan mqaccurate mqstatement mqregarding mqthe
mqdifferences mqbetween mqFannie mqMae mqand mqFreddie mqMac?
a. mqFannie mqmae mqis mqallowed mqto mqpurchase mqFHA mqloans mqwhile mqFreddie
mqMac mqis mqnot
b. mqFannie mqMae mqsecuritizes mqall mqof mqthe mqloans mqthat mqthey mqpurchase mqwhile
mqFreddie mqMac mqmaintains mqa mqloan mqportfolio
c. mqFreddie mqMac mqis mqmuch mqlarger mqthan mqFannie mqMae
d. mqFreddie mqMac mqprovides mqmortgage mqinsurance mqat mqa mqmuch mqsmaller mqcost
mqthan mqFannie mqMae mq- mqCorrect mq mqAnswer mq✔✔ mq- mqFannie mqMae mqis
mqallowed mqto mqpurchase mqFHA mqloans mqwhile mqFreddie mqMac mqis mqnot.
During mqthe mq1950's, mq1960's, mqand mq1970's mqresidential mqmortgage mqlending mqin
mqthe mqUnited mqStates mqwas mqdominated mqby:
a. mqCommercial mqbanks
b. mqGovernment mqlenders
c. mqMortgage mqbanks
d. mqSavings mqassociations mq- mqCorrect mq mqAnswer mq✔✔ mq- mqSavings
mqAssociations
During mqthe mqtime mqbetween mqmaking mqa mqloan mqcommitment mqand mqclosing mqthe
mqloan, mqthe mqmortgage mqbanker mqis mqexposed mqto:
a. mqcollateral mqrisk
b. mqfallout mqrisk
c. mqpricing mqrisk
d. mqwarehousing mqrisk mq- mqCorrect mq mqAnswer mq✔✔ mq- mqFallout mqrisk
Private mqmortgage mqinsurance mqis mqtypically mqrequired mqfor mqa mqloan mqif mqthe
mqloan-to-value mqratio mqis mqgreater mqthan:
a. mq50 mqpercent
b. mq80 mqpercent
c. mq90 mqpercent
d. mq100 mqpercent mq- mqCorrect mq mqAnswer mq✔✔ mq- mq80 mqpercent
Which mqONE mqof mqthe mqfollowing mqtypes mqof mqloans mqtypically mqhas mqa
mqprepayment mqpenalty?
a. mqCommercial mqmortgages
b. mqConforming mqmortgages
, c. mqConventional mqmortgages
d. mqPrime mqmortgages mq- mqCorrect mq mqAnswer mq✔✔ mq- mqCommercial mqMortgages
Which mqONE mqof mqthe mqfollowing mqbest mqdescribes mqthe mqrole mqthat mqFannie
mqMae mqand mqFreddie mqMac mqplay mqin mqthe mqU.S. mqresidential mqmortgage
mqmarkets?
a. mqThey mqassess mqthe mqamount mqof mqmortgage mqrisk mqin mqthe mqU.S mqeconomy
mqand mqtake mqsteps mqto mqreduce mqit mqif mqit mqgets mqtoo mqhigh.
b. mqThey mqmake mqloans mqto mqborrowers mqwith mqlow mqand mqmoderate mqincomes mq
c. mqThey mqprovide mqmortgage mqinsurance mqto mqprivate mqlenders
d. mqThey mqpurchase mqloans mqfrom mqprivate mqlenders mqin mqorder mqto mqissue
mqmortgage-backed mqsecurities mq- mqCorrect mq mqAnswer mq✔✔ mq- mqThey mqpurchase
mqloans mqfrom mqprivate mqlenders mqin mqorder mqto mqissue mqmortgage-backed
mqsecurities.
Which mqONE mqof mqthe mqfollowing mqis mqNOT mqan mqaccurate mqstatement mqregarding
mqthe mqFHA mqmortgage mqinsurance mqprogram?
a. mqFHA mqmortgage mqinsurance mqpayouts mqare mqlimited mqto mq20 mqpercent mqof mqthe
mqoriginal mqloan mqamount
b. mqThe mqFHA mqmorgage mqinsurance mqprogram mqwas mqcreated mqas mqa mqresult mqof
mqwhat mqhappened mqduring mqthe mqGreat mqDepression
c. mqThe mqFHA mqmortgage mqinsurance mqprogram mqwas mqcreated mqas mqa mqway mqto
mqencourage mqlenders mqto mqmake mq30-year mqfixed-rate mqmortgage mqloans
d. mqThe mqfunds mqfor mqloan mqmade mqunder mqFHA mqprograms mqcome mqfrom
mqprivate mqlenders mq- mqCorrect mq mqAnswer mq✔✔ mq- mqFHA mqmortgage mqinsurance
mqpayouts mqare mqlimited mqto mq20 mqpercent mqof mqthe mqoriginal mqloan mqamount.
According mqto mqthe mqepisode mqof mq"This mqAmerican mqLife" mqthat mqwe mqlistened
mqto, mqthe mqsudden mqclosure mqof mqSilver mqState mqMortgage mqwas mqreferred mqto
mqas mqthe mq____________ mqMassacre.
a. mqChristmas mqDay
b. mqEaster
c. mqHalloween
d. mqValentine's mqDay mq- mqCorrect mq mqAnswer mq✔✔ mq- mqValentine's mqDay
According mqto mqthe mqepisode mqof mq"Safe mqas mqHouses" mqThe mqAscent mqof
mqMoney mq2008 mqthat mqwe mqsaw mqin mqclass: mqthe mqpractice mqof mqgiving mqwhole
mqneighborhoods mqa mqnegative mqcredit mqrating mqcame mqto mqbe mqknown mqas
mq___________. mqThe mqresult mqwas mqthat mqwhen mqpeople mqfrom mqround mqthere
mqneeded mqmortgages, mqthey mqhad mqto mqpay mqsignificantly mqhigher mqinterest
mqrates:
a. mqDiscrimination
CORRECTLY ANSWERED [100%
A+]
The mqfederal mqagency mqthat mqwas mqcreated mqin mq1934 mqin mqorder mqto mqrestore
mqconfidence mqin mqthe mqmortgage mqmarket mqand mqtoday mqacts mqprimarily mqas mqa
mqmortgage mqinsurance mqcompany mqfor mqprivate mqlenders mqis:
A. mqFannie mqMae
B. mqThe mqFederal mqHousing mqAdministration
c. mqFreddie mqMac
d. mqGinnie mqMae mq- mqCorrect mq mqAnswer mq✔✔ mq- mqThe mqFederal mqHousing
mqAdministration
Interest-only mqloans mqare mqconsidered mqto mqbe mq_____________-amortizing mqloans.
a. mqfully
b. mqnegatively
c. mqnon
d. mqpartially mq- mqCorrect mq mqAnswer mq✔✔ mq- mqNon
The mqmortgage mqclause mqthat mqallows mqa mqlender mqto mqdemand mqimmediate
mqrepayment mqof mqall mqof mqa mqloan's mqoutstanding mqprincipal mqeven mqif mqthe
mqborrower mqhasn't mqdefaulted mqis mqknown mqas mqthe:
a. mqacceleration mqclause
b. mqdemand mqclause
c. mqescrow mqclause
d. mqrecourse mqclause mq- mqCorrect mq mqAnswer mq✔✔ mq- mqDemand mqClause
Which mqONE mqof mqthe mqfollowing mqbest mqdescribes mqthe mqroute mqthat mqthe mqU.S.
mqgovernment mqhas mqtaken mqin mqreforming mqFannie mqMae mqand mqFreddie mqMac
mqin mqorder mqto mqavoid mqa mqrepeat mqof mqthe mqrecent mqbailout?
a. mqThe mqgovernment mqhas mqnot mqyet mqdecided mqhow mqthey mqare mqgoing mqto mqbe
mqreformed
b. mqThey mqhave mqbeen mqabolished
c. mqThey mqhave mqbeen mqprivatized
,d. mqThey mqwill mqact mqas mqinsurers mqfor mqprivate mqlenders mq- mqCorrect mq mqAnswer
mq✔✔ mq- mqThe mqgovernment mqhas mqnot mqyet mqdecided mqhow mqthey mqare mqgoing
mqto mqbe mqreformed
Which mqONE mqof mqthe mqfollowing mqin mqan mqaccurate mqstatement mqregarding mqthe
mqdifferences mqbetween mqFannie mqMae mqand mqFreddie mqMac?
a. mqFannie mqmae mqis mqallowed mqto mqpurchase mqFHA mqloans mqwhile mqFreddie
mqMac mqis mqnot
b. mqFannie mqMae mqsecuritizes mqall mqof mqthe mqloans mqthat mqthey mqpurchase mqwhile
mqFreddie mqMac mqmaintains mqa mqloan mqportfolio
c. mqFreddie mqMac mqis mqmuch mqlarger mqthan mqFannie mqMae
d. mqFreddie mqMac mqprovides mqmortgage mqinsurance mqat mqa mqmuch mqsmaller mqcost
mqthan mqFannie mqMae mq- mqCorrect mq mqAnswer mq✔✔ mq- mqFannie mqMae mqis
mqallowed mqto mqpurchase mqFHA mqloans mqwhile mqFreddie mqMac mqis mqnot.
During mqthe mq1950's, mq1960's, mqand mq1970's mqresidential mqmortgage mqlending mqin
mqthe mqUnited mqStates mqwas mqdominated mqby:
a. mqCommercial mqbanks
b. mqGovernment mqlenders
c. mqMortgage mqbanks
d. mqSavings mqassociations mq- mqCorrect mq mqAnswer mq✔✔ mq- mqSavings
mqAssociations
During mqthe mqtime mqbetween mqmaking mqa mqloan mqcommitment mqand mqclosing mqthe
mqloan, mqthe mqmortgage mqbanker mqis mqexposed mqto:
a. mqcollateral mqrisk
b. mqfallout mqrisk
c. mqpricing mqrisk
d. mqwarehousing mqrisk mq- mqCorrect mq mqAnswer mq✔✔ mq- mqFallout mqrisk
Private mqmortgage mqinsurance mqis mqtypically mqrequired mqfor mqa mqloan mqif mqthe
mqloan-to-value mqratio mqis mqgreater mqthan:
a. mq50 mqpercent
b. mq80 mqpercent
c. mq90 mqpercent
d. mq100 mqpercent mq- mqCorrect mq mqAnswer mq✔✔ mq- mq80 mqpercent
Which mqONE mqof mqthe mqfollowing mqtypes mqof mqloans mqtypically mqhas mqa
mqprepayment mqpenalty?
a. mqCommercial mqmortgages
b. mqConforming mqmortgages
, c. mqConventional mqmortgages
d. mqPrime mqmortgages mq- mqCorrect mq mqAnswer mq✔✔ mq- mqCommercial mqMortgages
Which mqONE mqof mqthe mqfollowing mqbest mqdescribes mqthe mqrole mqthat mqFannie
mqMae mqand mqFreddie mqMac mqplay mqin mqthe mqU.S. mqresidential mqmortgage
mqmarkets?
a. mqThey mqassess mqthe mqamount mqof mqmortgage mqrisk mqin mqthe mqU.S mqeconomy
mqand mqtake mqsteps mqto mqreduce mqit mqif mqit mqgets mqtoo mqhigh.
b. mqThey mqmake mqloans mqto mqborrowers mqwith mqlow mqand mqmoderate mqincomes mq
c. mqThey mqprovide mqmortgage mqinsurance mqto mqprivate mqlenders
d. mqThey mqpurchase mqloans mqfrom mqprivate mqlenders mqin mqorder mqto mqissue
mqmortgage-backed mqsecurities mq- mqCorrect mq mqAnswer mq✔✔ mq- mqThey mqpurchase
mqloans mqfrom mqprivate mqlenders mqin mqorder mqto mqissue mqmortgage-backed
mqsecurities.
Which mqONE mqof mqthe mqfollowing mqis mqNOT mqan mqaccurate mqstatement mqregarding
mqthe mqFHA mqmortgage mqinsurance mqprogram?
a. mqFHA mqmortgage mqinsurance mqpayouts mqare mqlimited mqto mq20 mqpercent mqof mqthe
mqoriginal mqloan mqamount
b. mqThe mqFHA mqmorgage mqinsurance mqprogram mqwas mqcreated mqas mqa mqresult mqof
mqwhat mqhappened mqduring mqthe mqGreat mqDepression
c. mqThe mqFHA mqmortgage mqinsurance mqprogram mqwas mqcreated mqas mqa mqway mqto
mqencourage mqlenders mqto mqmake mq30-year mqfixed-rate mqmortgage mqloans
d. mqThe mqfunds mqfor mqloan mqmade mqunder mqFHA mqprograms mqcome mqfrom
mqprivate mqlenders mq- mqCorrect mq mqAnswer mq✔✔ mq- mqFHA mqmortgage mqinsurance
mqpayouts mqare mqlimited mqto mq20 mqpercent mqof mqthe mqoriginal mqloan mqamount.
According mqto mqthe mqepisode mqof mq"This mqAmerican mqLife" mqthat mqwe mqlistened
mqto, mqthe mqsudden mqclosure mqof mqSilver mqState mqMortgage mqwas mqreferred mqto
mqas mqthe mq____________ mqMassacre.
a. mqChristmas mqDay
b. mqEaster
c. mqHalloween
d. mqValentine's mqDay mq- mqCorrect mq mqAnswer mq✔✔ mq- mqValentine's mqDay
According mqto mqthe mqepisode mqof mq"Safe mqas mqHouses" mqThe mqAscent mqof
mqMoney mq2008 mqthat mqwe mqsaw mqin mqclass: mqthe mqpractice mqof mqgiving mqwhole
mqneighborhoods mqa mqnegative mqcredit mqrating mqcame mqto mqbe mqknown mqas
mq___________. mqThe mqresult mqwas mqthat mqwhen mqpeople mqfrom mqround mqthere
mqneeded mqmortgages, mqthey mqhad mqto mqpay mqsignificantly mqhigher mqinterest
mqrates:
a. mqDiscrimination
