SIE Exam Question 322: Answer and Explanation

Question: 322

A primary difference between Ginnie Mae and Fannie Mae/Freddie Mac is that Ginnie Mae

• A. mortgages are only available for government subsidized housing, while the others are available for all real estate purchases.
• B. only finances commercial mortgages, whereas the others finance home mortgages.
• C. is a government agency that has the explicit backing of the US government, while the others do not.
• D. is a publicly held company while the others are privately held.

Correct Answer: C

Explanation:

C - Ginnie Mae is a government agency that has the explicit backing of the US Government, while Fannie Mae and Freddie Mac have an 'implied' backing of the US government.