1. if a conventional loan is not sold to Fannie Mae or Freddie Mac, a. many lenders still comply with secondary market guidelines for potential sale purposes b. lenders can establish their own underwriting guidelines c. both A and B are correct d. neither A nor B is correct

2. the major source of capital brought into the mortgage market occurs through the operations of two corporations namely; a. Fannie Mae and Freddie Mac b. FHA and DVA c. Fannie Mae and Ginnie Mae d. HUD and Ginnie Mae

3.if a conventional loan is not sold to Fannie Mae or Freddie Mac, a. many lenders still comply with secondary market guidelines for potential sale purposes b. lenders can establish their own underwriting guidelines c. both A and B are correct d. neither A nor B is correct

4. To qualify for a VA loans, the Department of Veterans Affairs applies a two-phase procedure, namely a. residual income and qualifying income ratio b. net take-home pay and residual income c. total fixed obligations and borrower's living pattern d. one of the above

5.which of the following demonstrates high motivation in measuring borrowers' ability to pay back loans; a. buyer comes in with a 10% down payment b. House is purchased as investment property c. home is purchased for buyer s personal occupancy d. seller is carrying back part of the purchase money loan