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!

Practice this question and more.

Which of the following is not included in the secondary mortgage market?

Fannie Mae
Ginnie Mae
FDIC
Freddie Mac

The correct answer is: FDIC

In the context of the secondary mortgage market, the role of each organization is critical in the buying and selling of mortgage loans. The secondary mortgage market helps lenders maintain liquidity by allowing them to sell loans they originate, thus giving them the capacity to issue more loans. Fannie Mae, Ginnie Mae, and Freddie Mac are all integral players in this market. Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs) that buy mortgages from lenders, pool them, and sell them as mortgage-backed securities to investors. Ginnie Mae, while not a GSE, guarantees mortgage-backed securities that are issued by approved lenders, ensuring that investors receive timely payments. The Federal Deposit Insurance Corporation (FDIC), on the other hand, is primarily concerned with the protection of depositors in banks. Its main function is to insure deposits at banks and thrift institutions and does not participate in the buying or selling of mortgages in the secondary mortgage market. Hence, it is accurately identified as not being included in the operations of the secondary mortgage market as it does not engage in the activities related to the trading of mortgage loans or mortgage-backed securities.