Which entity provides guarantees on mortgage-backed securities backed by FHA, VA, and USDA loans?
Correct Answer
C) Ginnie Mae
Ginnie Mae (Government National Mortgage Association) is a government agency that guarantees mortgage-backed securities backed by government-insured loans such as FHA, VA, and USDA loans, providing the full faith and credit of the U.S. government.
Why This Is the Correct Answer
Ginnie Mae (Government National Mortgage Association) is a government agency that guarantees mortgage-backed securities backed by government-insured loans such as FHA, VA, and USDA loans, providing the full faith and credit of the U.S. government.
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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A borrower submits an application for a property they describe as '123 Main Street, Anytown, USA' but doesn't provide a state or ZIP code. They claim the address is sufficient since it's the only Main Street in the small town. Is this application complete under TRID?