Chapter 13: Types of Mortgages & Sources of Finance (FITB) Flashcards Preview

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Flashcards in Chapter 13: Types of Mortgages & Sources of Finance (FITB) Deck (15):
1

The process of qualifying a borrower and a property in connection with a loan application is known as mortgage ____.

underwriting

2

Life insurance companies are the largest source of funds for ____ loans.

non-residential

3

The least effective tool the Federal Reserve System has to affect the money supply is changes in the ____ ____.

discount rate

4

The most effective tool the Federal Reserve System has to affect the money supply is called ____ ____ ____.

open market operations

5

If the Federal Reserve should decide to buy government securities, the money supply would ____ and interest rates would ____.

increase, decrease

6

The Federal National Mortgage Association was originally created to buy ____ loans.

FHA

7

The government-owned organization operating in the secondary mortgage market to make low-yield, high-risk loans marketable is the ____ ____ ____ ____.

Government National Mortgage Association

8

A lender that prefers to keep a loan rather than sell it in the secondary market is called a ____ lender.

portfolio

9

The secondary mortgage marketing provides ____ to the primary mortgage market.

liquidity

10

The federal regulatory agency responsible for supervising saving associations is the ____ ____ ____ ____.

Office of Thrift Supervision

11

The flow of funds into deposits held by primary lenders that increase the mortgage money supply is referred to as ____.

intermediation

12

Mortgage brokers ____ loans and mortgage bankers ____ loans.

arrange, originate

13

The primary mortgage market is where loans are ____.

originated

14

A loan applicant's past credit history indicates his or her ____ to honor debt obligations, and his or her income is a measure of the ____ to repay the loan.

willingness, ability

15

A real estate investment trust (REIT) is formed as a ____ ____ and operates similarly to a ____ ____.

business trust, mutual fund

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