Which statement best describes the conservatorship status of Fannie Mae and Freddie Mac?
Correct Answer
B) They are under the control of FHFA due to financial difficulties in 2008
Fannie Mae and Freddie Mac have been under conservatorship by the Federal Housing Finance Agency (FHFA) since September 2008 due to financial instability during the housing crisis. They remain GSEs but operate under government control.
Why This Is the Correct Answer
Fannie Mae and Freddie Mac have been under conservatorship by the Federal Housing Finance Agency (FHFA) since September 2008 due to financial instability during the housing crisis. They remain GSEs but operate under government control.
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?
People Also Study
Federal Mortgage-Related Laws
23% of exam
Mortgage Loan Origination Activities
25% of exam
Ethics, Fraud & Consumer Protection
17% of exam
Uniform State Test Content
12% of exam
Previous Question
What type of security is created when mortgage loans are pooled together and sold to investors?
Next Question
During a refinance closing, the borrower notices that the settlement agent has not collected funds for the previous month's property taxes that were paid by the current servicer. The borrower asks if this will affect the payoff amount. How should this be handled?