CH 17 last 11 Flashcards
primary purposes for the secondary mortgage market?
cycle funds back to primary lenders so they can make more loans.
major players in the secondary mortgage market
Fannie Mae, Freddie Mac, and Ginnie Mae.
A principal role of FNMA
purchase FHA-backed and VA-backed loans
The primary role of the Federal Housing Authority in the mortgage lending market
insure loans made by approved lenders?
guarantee loans made by approved lenders?
The principal role of the Veteran’s Administration in the mortgage lending market
A graduated payment loan is a mortgage loan where?
the loan payments gradually increase.
A buydown is a financing arrangement where?
the borrower pays additional interest at the onset in order to obtain a lower interest rate.
The key feature of an adjustable mortgage loan?
the interest rate may vary.
One feature of a wraparound mortgage loan is?
the seller offering the buyer a wraparound can profit from a difference in interest rates.
a blanket mortgage loan?
A builder is required to secure a loan with mortgages on three properties.
Which of the following is true of a loan with negative amortization?
Payments are not sufficient to retire the loan.
