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The process of qualifying a borrower and a property in connection with a loan application is known as mortgage ___.
underwriting
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Life insurance companies are the largest source of funds for ___ loans.
non-residential
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The least effective tool the Federal Reserve System has to affect the money supply is called ___ ___.
discount rate
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The most effective tool the Federal Reserve System has to affect the money supply is called ___ ___ ___.
open market operations
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If the Federal Reserve should decide to buy government securities, the money supply would ___ and interest rates would ___.
increase, decrease
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The Federal National Mortgage Association (Fannie Mae) was originally created to buy ___ loans.
FHA
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The government-owned organization operating in the secondary mortgage market to make low-yield, high-risk loans marketable is the ___ ___ ___ ___ nicknamed ___ ___.
Government National Mortgage Association, Ginnie Mae
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A lender that prefers to keep a loan rather than sell it in the secondary market is called a ___ lender.
portfolio
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The secondary mortgage market provides ___ to the primary mortgage market.
liquidity
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A ___ ___ ___ is a loan secured by the equity in a home and generally must be repaid over a fixed loan period. A ___ is a revolving line of credit obtained against the equity of a home, in which the borrower can draw funds as needed.
home equity loan, HELOC
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The flow of funds into deposits held by primary lenders that increase the mortgage money supply is referred to as ___.
intermediation
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Mortgage loan originators ___ loans and mortgage lenders ___ loans.
arrange, originate (or make)
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The primary mortgage market is where loans are ___.
originated
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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
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A Real Estate Investment Trust (REIT) is formed as a ___ ___ and operates similarly to a ___ ___.
business trust, mutual fund
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