A lender originates an FHA loan and wants to sell it in the secondary market. Which entity would most likely purchase and securitize this loan?
Correct Answer
C) Ginnie Mae
Ginnie Mae (Government National Mortgage Association) purchases and securitizes government-insured loans including FHA, VA, and USDA loans. Fannie Mae and Freddie Mac primarily deal with conventional loans.
Why This Is the Correct Answer
Ginnie Mae (Government National Mortgage Association) purchases and securitizes government-insured loans including FHA, VA, and USDA loans. Fannie Mae and Freddie Mac primarily deal with conventional loans.
More Mortgage Knowledge Questions
A borrower is comparing two loan offers: Loan A has no points and 4.5% interest rate, Loan B has 2 points and 4.0% interest rate. The loan amount is $400,000. How much will the borrower pay upfront for the points on Loan B?
A lender charges a 1% origination fee on all loans. For a borrower obtaining a $250,000 mortgage, what is the maximum origination fee that can be charged without violating the points and fees test under the ATR/QM rule for a first-lien mortgage?
Under what circumstances can a Qualified Mortgage include a prepayment penalty?
A borrower is considering paying discount points to reduce their interest rate. Each point costs 1% of the loan amount and reduces the rate by 0.25%. On a $300,000 loan, how much would the borrower pay for 2 discount points?
A borrower asks about the difference between discount points and origination fees. What is the most accurate explanation?
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An FHA borrower obtained their loan in 2012 with a 95% LTV. They have been paying annual MIP for 11 years and the current loan balance is 82% of the original property value. The borrower requests MIP cancellation. What action should be taken?