Under what circumstance would a USDA Rural Development loan most likely be securitized through Ginnie Mae rather than sold to Fannie Mae or Freddie Mac?
Correct Answer
C) When the loan carries a government guarantee
Ginnie Mae only securitizes loans that carry a government guarantee, such as FHA, VA, or USDA loans. USDA Rural Development loans carry a government guarantee, making them eligible for Ginnie Mae securitization regardless of their rural location or other characteristics.
Why This Is the Correct Answer
Ginnie Mae only securitizes loans that carry a government guarantee, such as FHA, VA, or USDA loans. USDA Rural Development loans carry a government guarantee, making them eligible for Ginnie Mae securitization regardless of their rural location or other characteristics.
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