Which of the following statements about GNMA is/are true?
I. GNMA provides timing insurance.
II. GNMA creates pools of mortgages and issues securities.
III. GNMA insures only FHA,VA,and FMHA loans.
IV. GNMA requires that all mortgages in the pool have the same interest rate.

Question

Quizplus · Accepted Answer

I. GNMA provides timing insurance. - True
II. GNMA creates pools of mortgages and issues securities. - True
III. GNMA insures only FHA, VA, and FMHA loans. - True
IV. GNMA requires that all mortgages in the pool have the same interest rate. - False. GNMA pools can have mortgages with different interest rates as long as they are of the same type (e.g. FHA-insured).

Which of the Following Statements About GNMA Is/are True