California Real Estate Practice Exam

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Prepare for the California Real Estate Exam. Study with flashcards and multiple-choice questions, each question includes hints and explanations. Get ready to ace your exam!

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The primary activities of FNMA in the secondary money market involve:

2nd loans up to $22,000
all types of real estate loans
FHA loans only
VA and FHA loans

The correct answer is: 2nd loans up to $22,000

The primary activities of FNMA, also known as Fannie Mae, in the secondary money market involve purchasing and securitizing various types of mortgage loans to facilitate liquidity in the mortgage market. Fannie Mae operates broadly within the secondary market by buying loans that meet its conforming criteria, which includes a wide range of residential mortgages, not just second loans or loans of limited amounts. The correct answer reflects that Fannie Mae deals with a comprehensive array of mortgage types, and not just a specific niche, such as second loans, or loans from only government-backed programs like FHA or VA. Thus, Fannie Mae's role encompasses a wide range of property types and loan products, making the choice related to all types of real estate loans accurate in representing its activities. Fannie Mae’s involvement is not limited to any single type of loan or amount, which further emphasizes its expansive function in supporting the housing finance system through various mortgage products.