Mortgage Process Question and Answers

Question 1

APART FROM: The following organizations purchase securitized loans in the secondary market.

Accepted Answer

Sallie Mae

Answer

Ginnie Mae

Answer

Fannie Mae

Answer

Freddie Mac

Question 2

According to established lender policies, the process of determining whether to approve a loan is known as:

Accepted Answer

Underwriting

Answer

Processing

Answer

Servicing

Answer

Securitization

Question 3

A borrower's primary residence, where they spend at least 75% of their time, is regarded as:

Accepted Answer

Owner-occupied

Answer

Second home

Answer

Non-owner occupied

Answer

Condominium

Question 4

First mortgages issued by lenders that are not federally insured are:

Accepted Answer

Conventional mortgage

Answer

FHA Mortgage

Answer

VA Mortgage

Answer

RHS mortgage

Question 5

In _______________, residents share ownership of communal outdoor spaces and ownership is limited to the interior of the dwelling.

Accepted Answer

Condominium

Answer

Townhouse

Answer

Single-family residence

Answer

Multi-unit residence

Question 6

The following three organizations control the secondary market:

Accepted Answer

Fannie Mae, Freddie Mac and Ginnie Mae

Answer

FHA, Fannie Mae and Ginnie Mae

Answer

Freddie Mac, Fannie Mae and HUD

Answer

Commercial Banks, S&L and Freddie Mac

Question 7

Identify the organization that provides loan insurance in place of private mortgage insurance.

Accepted Answer

Federal Housing Administration

Answer

Secondary Market

Answer

Fannie Mae

Answer

Freddie Mac