Week M Cue Cards

Question	Answer
Banks Borrow from savers at ib Banks Lend to borrowers at is T/F	Borrow from savers = is Lend to borrowers = ib
Spread is ib - is Banks want a higher ib than is T/F	True
Federal Government Home Owner Loan Corp was started in 19__	1933
Federal Housing Administration (mortgage insurance) was developed in 193_	1934
What is Fannie Mae?	In 1938, Federal National Mortgage Association Was formed to buy FHA insured mortgage loans and sell when permitted
What is Ginnie Mae?	Government National Mortgage Association A Secondary Mortgage Market - They bought and pooled FHA and VA insured mortgages and sold in pooled funds of insured loans (same time FNMA privatized)
What is Freddie Mac?	Federal Home Loan Mortgage (1970), Formed to buy and pool conventional mortgage loans
What is REG Q?	Deposit rate ceilings: Max Interest rate that could be paid by banks
What is the Dominion Housing Act (1935)?	Direct financing of a limited number of loans (Goal was to create demand for housing and create employment)
What is the National Housing Act (1944)	Joint Federal/private mortgage lending, federal guarantees of home improvement loans
What did CMHC do in 1945	Direct lending PLUS administered NHA
1954 CMHC - What happened	Became a mortgage insurer instead of direct lender
What is the 'Matching Problem'?	Effectively matching duration of lending with Borrowing
What happened to the NHA in 1969	Interest Rate was Freed completely and refinanced after 5 year term became possible

Resource summary

	Created by dylan_earl about 9 years ago