Question 1
Which entity guarantees mortgage-backed securities that are composed of government-backed loans, such as FHA and VA loans?
Show answer & explanation
Correct answer: D - Ginnie Mae (GNMA)
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These 10 free GMA questions are organized by exam domain, so you can see how each part of the General Mortgage Associate (GMA) blueprint is tested. Reveal the answer and explanation under each question.
Which entity guarantees mortgage-backed securities that are composed of government-backed loans, such as FHA and VA loans?
Correct answer: D - Ginnie Mae (GNMA)
A borrower needs a loan amount that exceeds the baseline conforming loan limit set annually by the FHFA and does not meet Fannie Mae or Freddie Mac guidelines. This loan is BEST described as a:
Correct answer: B - Jumbo (non-conforming) loan
What is the primary distinction between a mortgage banker and a mortgage broker?
Correct answer: B - A banker funds and closes loans in its own name, while a broker arranges them
During underwriting, a lender verifies a borrower's two-year employment history and calculates their debt-to-income ratio to confirm they can afford the monthly payment. Which of the four Cs of underwriting does this assessment primarily address?
Correct answer: A - Capacity
A property is purchased for $320,000 with a $48,000 down payment. What is the loan-to-value (LTV) ratio on the new first mortgage?
Correct answer: B - 85%
A borrower has a gross monthly income of $8,000. Their proposed total housing payment (PITI) is $1,800, and they have $600 in other monthly debt payments. What is the borrower's back-end (total) debt-to-income ratio?
Correct answer: D - 30%
On a loan application, a borrower states they will live in the property as their primary residence to obtain better terms, but they actually intend to rent it out and never move in. This misrepresentation is BEST classified as:
Correct answer: A - Occupancy fraud
A lender repeatedly refinances the same borrower over a short period, charging new fees and points each time while providing little or no benefit to the borrower and steadily eroding their equity. This predatory practice is known as:
Correct answer: C - Loan flipping
A loan applicant believes they were denied credit in part because they are recently divorced. 'Marital status' is a protected characteristic under which of the following?
Correct answer: C - The Equal Credit Opportunity Act
Under the TILA-RESPA Integrated Disclosure (TRID) rule, within how many business days of receiving a borrower's application must a lender deliver or mail the Loan Estimate?
Correct answer: A - Within 3 business days
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