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 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?
A borrower refinances their home with a cash-out refinance loan of $750,000. The original loan balance was $400,000, and they're taking $300,000 in cash. If conforming limits allow $766,550, how is this loan classified?
Under TRID regulations, discount points must be disclosed on the Loan Estimate in which section?
During the draw period of a HELOC, what type of payments are borrowers typically required to make?
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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?