Ch 5 Sources Of Funds

Question 1

The market where borrowers and mortgage lenders come together to create and negotiate terms of a mortgage transaction is called

Answer 1

The primary market

Question 2

The primary mortgage market is made up of businesses that lend to borrowers are often referred to as

Answer 2

Loan originators

Question 3

Primary market lenders include:

Answer 3

Savings and Loans, commercial banks, credit unions, or any person or business that provides cash for someone seeking a mortgage

Question 4

Commercial banks has majority of their loans sold in the secondary market, their loans are retained as ?

Answer 4

“Portfolio Loans”

Question 5

True or false: Government entities do not regularly sell municipal bonds to fund major capital investments

Answer 5

False: they do !

Question 6

True or false: municipal bonds may also be exempt from state and local income tax

Answer 6

True

Question 7

Mortgage-backed bonds are secured by

Answer 7

The pledge of a pool of mortgage loans

Question 8

The ___ mortgage market is made up of the businesses that lend to borrowers for the purchase of real estate

Answer 8

Primary

Question 9

A(n) _____ is a person, corporation, or firm not otherwise in banking that provides its own funds for mortgage financing purposes

Answer 9

Mortgage banker