Important Players in the Secondary Mortgage Market

Question 1

Explain the secondary mortgage market

Answer 1

Consists of holding agencies that buy a bunch of mortgage loans and put them into a package for resale to investors

Question 2

Who are the 3 important players in the secondary mortgage market?

Answer 2

Ginnie Mae, Fannie Mae, and Freddie Mac

Question 3

Who is Ginnie Mae?

Answer 3

Gov’t National Mortgage Association (GNMA)

Question 4

Who is Fannie Mae?

Answer 4

Federal National Mortgage Association (FNMA)

Question 5

Who is Freddie Mac?

Answer 5

Federal Home Loan Mortgage Corporation (FHLMC)

Question 6

What does GNMA do?

Answer 6

a corporation within the Department of Housing and Urban Development to create and operate a mortgage-backed security program for the Federal Housing Administration and Veterans Administration mortgages.

Question 7

What does FNMA do?

Answer 7

a shareholder-owned company that works to make sure mortgage money is available for people across the country.

Question 8

What does FHLMC do?

Answer 8

a mortgage-backed security for conventional loans.