This question has the wrong right Answer

FINRA FINRA SIE
1

https://app.achievable.me/study/finra-sie/quiz/GVV47#seed=67XHB&slug=fannie-mae-generally-engages-with-what-type-of-product-to-crea…

Q: Fannie Mae generally engages with what type of product to create its asset-backed securities

Answer: Conventional Mortgages
The site Answer gave FHA and VA insured mortgages + conventional mortgages. I thought these were only for Ginne Mae agency.

Please let me know if I’m wrong

2

Good thought; the wording here is important:

  • Ginnie Mae: guarantees pools of only FHA- and VA-insured loans. It does not buy the loans itself; it just puts the full US-govt guarantee on the MBS.

  • Fannie Mae: buys FHA, VA, and conventional mortgages from lenders and then packages them into MBS it sells to investors. No full US guarantee, just the agency’s credit.

So FHA/VA loans can show up in both places, but the role each agency plays is different:

  • Ginnie = guarantor only
  • Fannie = purchaser/issuer
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