In Acting to Help Create a Secondary Mortgage Market, Fannie

question 8

Multiple Choice

In acting to help create a secondary mortgage market, Fannie Mae solved the  standardization problem by

• A)pooling mortgages together and creating a new financial instrument called a mortgage pass-through.
• B)functioning as the loan servicer, collecting the payments from various mortgages and creating a nice, even, steady stream of payments to the institutional investors.
• C)requiring loan originators to make sure only FHA, VA, or other government-qualified mortgages were included in mortgage pools.
• D)creating Ginnie Mae and Freddie Mac to service bundled loans for institutional investors.

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