In Acting to Help Create a Secondary Mortgage Market, Fannie

question 30

Multiple Choice

In acting to help create a secondary mortgage market, Fannie Mae solved the "difficult to evaluate" 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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Definitions:

Discontinuous Objectives

Goals that require a significant shift or change in organizational strategy or behavior, often leading to transformative outcomes.

Competitive Environments

The dynamic external system in which businesses compete for resources, customers, and market position.

Sociocultural Environments

The societal and cultural factors that influence an organization's operations, including norms, values, customs, and demographics.

Opportunities

External factors or situations that can be leveraged by a business or organization to achieve its goals.