Florida Real Estate Practice Exam

Ginnie Mae approved mortgage-backed securities _____________.

1. Carry the full faith and credit guarantee of the federal government

2. Are to be paid on closing date

3. Are sold to the primary market

4. Do not have to pay fees

The correct answer is: Carry the full faith and credit guarantee of the federal government

Ginnie Mae approved mortgage-backed securities carry the full faith and credit guarantee of the federal government, which means that the government ensures the timely payment of principal and interest to investors. This is not the case with other options. Option B is not correct because all mortgage-backed securities have a specific payment date. Option C is incorrect because Ginnie Mae securities are only sold to the secondary market, meaning they were originally created and sold by lenders to investors. Option D is incorrect because all mortgage-backed securities have fees associated with them, such as origination fees paid by the borrowers. Ginnie Mae securities are no exception.