36. The Government National Mortgage Association (GNMA) was organized to perform three principal functions. Which of the following is NOT a function of GNMA? (A) Provide special assistance lending in support of federal programs (8) Manage and liquidate mortgages previously acquired by FNMA (C) Manage all secondary mortgage market operations (D) Provide a guarantee for FHA/VA mortgage pools that would provide a guarantee for mortgage backed securities 37. Which of the following statements regarding mortgage-backed bonds is generally TRUE? (A) The total value of the MBBs issued usually equals the value of the mortgages in the underlying pool (B) Unlike corporate bonds, MBBs usually are issued with variable coupon rates of interest ) Overcollateralization of the mortgage pool assures investors that the income from mortgage will be sufficient to pay the interest on bonds and the principal upon maturity (D) All of the above 38. Noncumulative pari passu distribution refers to a. b. c. d. The payment of dividends by S-corps A preferred payment received by money partners and operating partners Payments distributed when the enterprise has negative cash flows The difference in payments received by partners and the payments received by bondholders 39. Which of the following is one reason that construction lenders typically prefer the cost approach to valuation over the income approach? The cost approach provides a more conservative estimate of value The cost approach provides a more optimistic estimate of value The cost approach is a good indication of the expected value of an income-producing property once construction is complete and it has been leased-up The cost approach is a better estimate of actual market value of the project a. b. c. d