CHAPTER 13 REVIEW QUESTIONS

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  1. The process of qualifying a borrower and a property in connection with a loan application is known as mortgage ___.
    underwriting
  2. Life insurance companies are the largest source of funds for ___ loans.
    non-residential
  3. The least effective tool the Federal Reserve System has to affect the money supply is called ___ ___.
    discount rate
  4. The most effective tool the Federal Reserve System has to affect the money supply is called ___ ___ ___.
    open market operations
  5. If the Federal Reserve should decide to buy government securities, the money supply would ___ and interest rates would ___.
    increase, decrease
  6. The Federal National Mortgage Association (Fannie Mae) was originally created to buy ___ loans.
    FHA
  7. The government-owned organization operating in the secondary mortgage market to make low-yield, high-risk loans marketable is the ___ ___ ___ ___ nicknamed ___ ___.
    Government National Mortgage Association, Ginnie Mae
  8. A lender that prefers to keep a loan rather than sell it in the secondary market is called a ___ lender.
    portfolio
  9. The secondary mortgage market provides ___ to the primary mortgage market.
    liquidity
  10. A ___ ___ ___ is a loan secured by the equity in a home and generally must be repaid over a fixed loan period.  A ___ is a revolving line of credit obtained against the equity of a home, in which the borrower can draw funds as needed.
    home equity loan, HELOC
  11. The flow of funds into deposits held by primary lenders that increase the mortgage money supply is referred to as ___.
    intermediation
  12. Mortgage loan originators ___ loans and mortgage lenders ___ loans.
    arrange, originate (or make)
  13. The primary mortgage market is where loans are ___.
    originated
  14. A loan applicant's past credit history indicates his or her ___ to honor debt obligations, and his or her income is a measure of the ___ to repay the loan.
    willingness, ability
  15. A Real Estate Investment Trust (REIT) is formed as a ___ ___ and operates similarly to a ___ ___.
    business trust, mutual fund

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Author:
mccullochhelen
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331989
Filename:
CHAPTER 13 REVIEW QUESTIONS
Updated:
2017-06-04 23:51:36
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REVIEW QUESTIONS
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