Question

-Which of the following is NOT a characteristic of prime or conforming mortgages? (Select all that apply)

A.They can be purchased by Fannie Mae and Freddie Mac

B.They can be guaranteed by the government

C.They are protected from bankruptcy

They can be packaged into mortgage-backed securities

7 Which of the following is a characteristic of prime or conforming mortgages? (Select all that apply)

A.They can be packaged into mortgage-backed securities

B.They can be guaranteed by the government

C.They are protected from bankruptcy They can be purchased by Fannie Mae and Freddie Mac

8 In the United States which of the following was true? (Select all that apply)

A.The housing crisis was a primary driver of the financial crisis

B.The housing crisis was characterized by high foreclosure rates nationally but it was significantly worse in some regions and for some types of mortgages

C.The combination of the housing crisis and the financial crisis deepened the real economic effects of what would later be called “The Great Recession”

D.The financial crisis was a primary driver of the housing crisis

Answer 1

Part 1 ) OPTION C-------They are protected from bankruptcy

Other options are purely the characteristics of Prime or Conforming Mortgages

Conforming mortgages are one that follows the guidelines of Fannie MAe and Freedie Mac he two government sponsored agencies that buy mortgages on the secondary market and package them as Mortgage backed securities.

Part 2) OPTION A, OPTION B, OPTION D

A.They can be packaged into mortgage-backed securities

B.They can be guaranteed by the government

D.They can be purchased by Fannie Mae and Freddie Mac

Conforming mortgages are one that follows the guidelines of Fannie MAe and Freedie Mac he two government sponsored agencies that buy mortgages on the secondary market and package them as Mortgage backed securities.

Part 3) OPTION A, OPTION B, OPTION C

A.The housing crisis was a primary driver of the financial crisis

B. The housing crisis was characterized by high foreclosure rates nationally but it was significantly worse in some regions and for some types of mortgages

C.The combination of the housing crisis and the financial crisis deepened the real economic effects of what would later be called “The Great Recession”

OPTION D is wrong since housing crisis was a primary driver of the financial crisis