Question

Which of the following is a government-sponsored agency that specializes in mortgage securitization?

a. Freddie Mac
b. Fannie Mae
c. Sallie Mae
d. All of the above
e. Only (a) and (b) of the above

Answer 1

The correct answer is e. Only (a) and (b) of the above: Freddy Mac and Fannie Mae. Both are government-sponsored agencies that specialize in mortgage securitization. Sallie Mae is not involved in this process and focuses on student loans.

Step-by-step explanation:

The government-sponsored agency that specializes in mortgage securitization is both Freddy Mac and Fannie Mae. These are both government-regulated corporations involved in buying and selling mortgages from banks, a process known as mortgage securitization. Mortgage securitization is a financial practice where individual mortgage loans are bundled and sold as a form of security to investors.

Sallie Mae, on the other hand, was historically associated with student loans and is not involved in mortgage securitization. Therefore, the correct answer to the question is e. Only (a) and (b) of the above: Freddy Mac and Fannie Mae.