Question

All of the following statements are true about the Government National Mortgage Association Pass-Through Certificates EXCEPT: A GNMA is empowered to borrow from the Treasury to pay interest and principal if necessary B interest payments are exempt from state and local tax C certificates are issued in minimum units of $25,000 D the credit rating is considered the highest of any agency security Review

Answer 1

B interest payments are exempt from state and local tax

Step-by-step explanation:

GNMA mission is to diversify the funding for the mortgage purpose that could be insured or guaranteed by the other federal agenceies. It is basically used for borrowing in order to pay the interest and principal amount. The certficates should be issued that contains the minimum units of 25,000 also the credit rating is relevant in this

Therefore the above represent the answer