A mortgage company originates an FHA loan and wants to securitize it immediately. The loan must first be sold to which entity before it can be included in a Ginnie Mae MBS pool?
Correct Answer
B) An approved Ginnie Mae issuer who will create the MBS
Ginnie Mae does not purchase loans directly. FHA loans must be sold to an approved Ginnie Mae issuer (typically a bank or mortgage company) who then pools the loans and creates the mortgage-backed securities that Ginnie Mae guarantees.
Why This Is the Correct Answer
Ginnie Mae does not purchase loans directly. FHA loans must be sold to an approved Ginnie Mae issuer (typically a bank or mortgage company) who then pools the loans and creates the mortgage-backed securities that Ginnie Mae guarantees.
More Mortgage Knowledge Questions
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