After New HUD Guidelines Were Issued in 1999, Freddie Mac

question 149

Multiple Choice

After new HUD guidelines were issued in 1999, Freddie Mac and Fannie Mae

• A) extended fewer loans to borrowers making a down payment of 5 percent or less.
• B) extended more loans to borrowers making a down payment of 5 percent or less.
• C) extended new loans only to borrowers making a down payment of at least 20 percent.
• D) refused to extend new loans without full verification that the borrower had prime credit status.

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Definitions:

Economic Life

The period during which an asset is expected to be useful and economically viable.

Lease-purchase Analysis

An evaluation to determine whether leasing or purchasing assets is more cost-effective for a business or individual.

Maintenance

The upkeep required to ensure machinery, buildings, or software remains operational and in good condition.

Insurance Premium

The amount paid for an insurance policy, typically on a regular basis, in exchange for coverage.