General Mortgage Knowledge Flashcards
PRIMARY MORTGAGE MARKET
The market where borrowers and mortgage lenders come together to create and negotiate terms of
a mortgage transaction is called the primary mortgage market.
SECONDARY MORTGAGE MARKET
A market for the purchase and sale of existing mortgages designed to provide greater liquidity for
selling mortgages; is the secondary market
A market for the purchase and sale of existing mortgages designed to provide greater
liquidity for selling mortgages is called the ____.
Secondary Market
The Federal agency established to restore Fannie Mae and Freddie Mac to a sound and
solvent financial condition is ____.
Federal Housing Finance Agency (FHFA)
The ______ guarantee allows mortgage lenders to obtain a better price for their loans in
the capital markets.
Government National Mortgage Association’s (GNMA)
A federally chartered corporation established as the Federal Home Loan Mortgage Corporation
(FHLMC) in 1970 for the purpose of purchasing mortgages in the secondary
market is also known as _____.
Freddie Mac
The line of credit used by a mortgage lender to close and fund a loan before selling it in the
secondary market is called a ____.
Warehouse Line
Today the ____ specializes as the intermediary between the borrower and the lender.
Mortgage Broker
A _____ is a mortgage that is not guaranteed or insured by any government agency.
Conventional Loan
A _______ seeks to originate numerous loan transactions and then sell these mortgages to
large investors.
Mortgage Banker
