California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

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What agency buys residential conventional mortgage loans?

Federal National Mortgage Association
Federal Home Loan Bank
Federal Home Loan Mortgage Corporation
Government National Mortgage Association

The correct answer is: Federal Home Loan Mortgage Corporation

While each of the other options may be involved in the mortgage industry, they are not the primary agency responsible for purchasing residential conventional mortgage loans. A The Federal National Mortgage Association (Fannie Mae) primarily deals with purchasing and guaranteeing mortgage loans through its own network of lenders, but focuses mostly on low- and middle-income borrowers. B: The Federal Home Loan Bank provides support and financing to other lending institutions, including community banks and credit unions. D: The Government National Mortgage Association (Ginnie Mae) is responsible for guaranteeing government-backed loans, such as FHA and VA loans.