"In packaging loans to create a mortgage-backed security, Freddie Mac and Fannie Mae can only use government loans."
What will be an ideal response?
In contrast to government loans, there are loans that have no explicit guarantee from thefederal government. Such loans are said to be obtained from "conventional financing" and thereforeare referred to in the market as conventional loans. Although a conventional loan may not beinsured when it is originated, a loan may qualify to be insured when it is included in a pool ofmortgage loans that backs a mortgage-backed security (MBS).More specifically, MBSs are thoseissued by two government-sponsored enterprises,Freddie Mac and Fannie Mae. Because the guaranteesof Freddie Mac and Fannie Mae do not carry the full faith and credit of the U.S. government,they are not classified as government loans.
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Which of the following is an example of financial information?
a. Operating expenses b. Budgeted hours c. Units in inventory d. Warranty claims
The capacity expansion approach that provides the most safety capacity is
a. One large capacity increase b. Small capacity increases that match demand c. Small capacity increases that lead demand d. Small capacity increases that lag demand
_____ is the largest Latin American trade agreement and includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela
a. Mercosur b. General Agreement on Tariffs and Trade (GATT) c. The Uruguay Round d. The North American Free Trade Agreement (NAFTA)
In the cost method of accounting, gross profits can be computed monthly if a physical inventory is conducted on a quarterly basis
Indicate whether the statement is true or false