Unit 13 - Government Involvement in Real Estate Financing

Question 1

The real estate financing market has three basic components:

Answer 1

1. Government influences, primarily the Federal Reserve System, Home Loan Bank System and the Office of Thrift Supervision
2. The primary mortgage market
3. The secondary mortgage market

Question 2

The Federal Reserve System establishes the monetary policies under which the primary mortgage market originates loans which are

Answer 2

bought, sold and traded in the secondary mortgage market.

Question 3

The role of the Federal Reserve System is to:

Answer 3

1. Maintain sound credit conditions
2. Help counteract inflationary and deflationary trends
3. Create a favorable economic environment

Question 4

There are 12 Federal Reserve Districts in the US with each being served by..

Answer 4

each being served by a Federal Reserve Bank.

Question 5

All federally chartered banks are required to join the Fed and ..

Answer 5

purchase stock in the Fed District Banks.