Chp. 16 - Real Estate Finance 2 Flashcards
Which of the secondary mortgage market agencies has a goal of helping minority populations obtain homeownership.
Freddie Mac
Why is the borrower’s net worth significant to the lender?
The borrower’s net worth indicates ability to keep up with loan’s payments if the borrower loses their job.
Redlining is
when lender requires a higher down payment from the unqualified buyer because of the type of neighborhood in which the property is located.
Who is not a major player in the secondary mortgage market?
Fannie Mac
When a lender requires a higher down payment due to the neighborhood where the property is located, this is called
Redlining.
Which of the secondary mortgage market agencies is now a private corporation?
Fannie Mae
The ratio of the loan principal to the value of the property is called
Loan-to-value ratio.
Which of the secondary mortgage market agencies introduced the first conventional-loan-backed security?
Freddie Mac
______________ is a shareholder-owned company that works to make sure mortgage money is available for people across the country.
Fannie Mae
Which of the following is NOT a primary mortgage market lender?
HUD
Ginnie Mae developed the first mortgage-backed security in
1970.
When a lender convinces a borrower to refinance a loan and then charges high points and fees, this is called
Predatory lending.
Loan flipping.
Illegal lending practices.
[All of the above]
Which of the secondary mortgage market agencies sets guidelines for conforming loans?
Fannie Mae
What is not a criterion that lenders look at when determining whether to grant a loan?
The borrower’s age, sex, race, and religion
Who would probably NOT be targeted by predatory lenders?
People with “A” paper
