What type of mortgage-backed securities does Ginnie Mae guarantee?
Correct Answer
C) Securities backed by government-insured or guaranteed loans
Ginnie Mae guarantees mortgage-backed securities that are backed by government-insured loans (FHA, USDA) or government-guaranteed loans (VA). This guarantee is backed by the full faith and credit of the U.S. government.
Why This Is the Correct Answer
Ginnie Mae guarantees mortgage-backed securities that are backed by government-insured loans (FHA, USDA) or government-guaranteed loans (VA). This guarantee is backed by the full faith and credit of the U.S. government.
More Mortgage Knowledge Questions
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A borrower submits a loan application but fails to provide their Social Security number, claiming privacy concerns. The MLO has obtained the borrower's name, income, estimated property value, loan amount, and property address. According to TRID regulations, what is the status of this submission?
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In the amortization schedule of a fixed-rate mortgage, the monthly principal portion increases over time because: