Alabama Real Estate Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Master your Alabama real estate exam with our comprehensive practice test. Tailored feedback, expert tips, and up-to-date questions to ensure your success!

Start Multiple Choice Practice Test
Start Flash Cards

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which organization does NOT buy, sell, or securitize mortgages but instead guarantees mortgage-backed securities?

  1. Fannie Mae

  2. Freddie Mac

  3. Ginnie Mae

  4. Federal Reserve

The correct answer is: Ginnie Mae

Ginnie Mae differs from the other options in that it is not a lending or securitizing entity. Instead, it is a government-owned corporation that guarantees mortgage-backed securities issued by private lenders, similar to how the FDIC guarantees bank deposits. The other options - Fannie Mae, Freddie Mac, and the Federal Reserve - all play a role in purchasing, selling, or securing mortgages, but Ginnie Mae's role is solely to ensure the timely payment of mortgage-backed securities.

More Questions Like This