Loan Officer Practice Exam 2026 – Comprehensive All-in-One Guide for Exam Success!

Question: 1 / 415

An example of a federally related mortgage loan is?

Home equity line of credit

Construction loan

Refinance loan

Home mortgage

A federally related mortgage loan is defined as a loan which is either insured or guaranteed by a federal agency or a loan that applies to regulations governed by the federal government. A home mortgage fits this definition because it is often secured or insured by entities such as the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), or is eligible for purchase by government-sponsored enterprises like Fannie Mae and Freddie Mac.

In contrast, while options like a home equity line of credit, construction loan, and refinance loan may often involve mortgage financing, they do not inherently qualify as federally related mortgage loans unless they meet specific criteria involving federal involvement or insurance. Therefore, the home mortgage stands out as the clear example of a federally related mortgage loan.

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