Finance
In NJ, which government-sponsored enterprise (GSE) secondary mortgage market entity buys and guarantees conforming conventional mortgages?
AFHA and VA
BFannie Mae (FNMA) and Freddie Mac (FHLMC)✓ Correct
CNJHMFA only
DThe Federal Reserve
Explanation
Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) are the primary GSEs that purchase conforming conventional mortgages from NJ lenders, providing liquidity to the primary market.
People Also Study
Related New Jersey Questions
- Which federal law requires lenders to provide a Loan Estimate to a mortgage applicant within three business days of application?Finance
- Under the Home Mortgage Disclosure Act (HMDA), NJ lenders covered by HMDA must report loan data to identify:Finance
- A New Jersey purchase contract specifies that the sale is contingent on the buyer obtaining a mortgage at a rate not to exceed 7%. If the buyer qualifies only for a loan at 7.5%, the buyer may:Contracts
- A 'conventional' mortgage loan is one that is:Finance
- A conventional loan that exceeds the conforming loan limit set by the FHFA is called a:Finance
Key Terms to Know
Loan-to-Value Ratio (LTV)
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Study This Topic
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →