Champions Real Estate Finance Exam Questions and Answers

Freddie Mac is a federally chartered corporation established as the Federal Home Loan Mortgage Corporation (FHLMC) - ANSWER-in 1970 for the purpose of purchasing mortgages in the secondary market. Freddie Mac is a stockholder-owned corporation chartered by Congress to increase the supply of funds that mortgage lenders, such as commercial banks, mortgage bankers, savings institutions and credit unions can make available to homeowners and multi-family investors. Most of its listed stock is owned by savings associations. Housing and Economic Recovery Act (HERA) - ANSWER-was enacted on July 30, 2008. HERA created the Federal Housing Finance Agency (FHFA) as the successor agency to the Office of Federal Housing Enterprise Oversight and the Federal Housing Finance Board. The Office of Federal Housing Enterprise Oversight had been established in 1992 to regulate Fannie Mae and Freddie Mac. On September 7, 2008, the Federal Housing Finance Agency (FHFA) ...... - ANSWER-placed Fannie Mae and Freddie Mac in conservatorship. As conservator, the FHFA has taken over the assets and assumed all the powers of the shareholders, directors, and officers. It may take any necessary action to restore the firms to a sound and solvent condition. Stockholders' voting rights are suspended during the conservatorship, and both firms' CEOs have been replaced. Dividends on common and preferred stock have been suspended, although the shares continue to trade. GSE business operations will continue as before; the conservator will delegate authority to the companies' new management to move forward. The conservatorship will end when the FHFA finds that a safe and solvent condition has been restored The Government National Mortgage Association (GNMA), or Ginnie Mae - ANSWER-, was established in the United States in 1968 to promote home ownership. It is a wholly-owned government association that operates a mortgage-backed securities program designed to facilitate the flow of capital into the housing industry. ____approved private institutions issue mortgage-backed securities with payments that are guaranteed even if borrowers or issuers default on their obligations. ___ securities are the only mortgage backed securities (MBS) to carry the full faith and credit guaranty of the United States Government,