322-22

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Author:
SAngell3
ID:
223267
Filename:
322-22
Updated:
2013-06-10 15:20:20
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322 22
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Description:
322-22
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  1. The Federal Home Loan Bank (FHLB) system is organized somewhat like the Federal Reserve system today, with 12 regional home loan banks supervised by the Federal Housing Finance Board.  

    A) True  
    B) False
    A) True  
  2. Unlike the Federal Housing Administration (FHA), the Veteran's Administration (VA) offered to insure residential mortgages and helped to lower both loan rates and down payments required for new homes.  

    A) True  
    B) False
    B) False
  3. Today the majority of Fannie's mortgage related assets are actually securities backed by various kinds of home mortgages.  

    A) True  
    B) False
    A) True  
  4. The creation of Freddie Mac in 1970 reflected a desire by the federal government to develop a stronger secondary market for conventional home mortgages, of which it purchased huge quantities.  

    A) True  
    B) False
    A) True  
  5. To raise funds to support loan purchases, Freddie Mac buys mortgage participation certificates (PCs) and guaranteed mortgage certificates (GMCs).  

    A) True  
    B) False
    B) False
  6. In 2008, mortgage pools or trusts accounted for approximately what percentage of mortgages in the U.S. market?  

    A) 51%
    B) 25%  
    C) 49 %  
    D) 10%  
    E) 5%  
    A) 51%
    (this multiple choice question has been scrambled)
  7. With option adjustable rate mortgages the homebuyer can choose among several different mortgage payment plans each month, including paying interest only or:  

    A) making a minimum payment that is less than the interest owed, which increases the total amount of the mortgage.  
    B) A and B only  
    C) making a conventional loan payment covering principal, interest, taxes and insurance.  
    D) making no payment.  
    E) none of the above
    B) A and B only  
    (this multiple choice question has been scrambled)
  8. The Chicago mercantile exchange has developed housing _________________ that are settled in cash based on real estate prices in 10 large American cities.  

    A) futures and options  
    B) options  
    C) securities  
    D) futures  
    E) none of the above
    A) futures and options  
    (this multiple choice question has been scrambled)
  9. Fannie Mae (FNMA) holds some of the mortgages it purchases in its own portfolio and __________ the remainder.  

    A) A and B only  
    B) sells  
    C) securitizes  
    D) writes off  
    E) none of the above
    C) securitizes  
    (this multiple choice question has been scrambled)
  10. ________________ home mortgages are among the oldest forms of home loans.  

    A) Variable-rate  
    B) The balloon payment  
    C) Flat Rate  
    D) Fixed-rate  
    E) none of the above
    D) Fixed-rate
    (this multiple choice question has been scrambled)

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