Florida Real Estate Practice Exam

What does the Federal Housing Finance Agency control?

1. Mainly focuses on educating consumers about mortgages

2. Controls the availability of funds and interest rates

3. Lends money to financial institutions

4. Sets limits for conforming loans and borrowing amounts for lower-income groups

The correct answer is: Sets limits for conforming loans and borrowing amounts for lower-income groups

The Federal Housing Finance Agency does not focus on educating consumers about mortgages (A). This falls under the jurisdiction of the Consumer Financial Protection Bureau. B is also incorrect as the Federal Housing Finance Agency does not directly control the availability of funds and interest rates, although it does have some influence on them through oversight of Fannie Mae and Freddie Mac. C Lending money to financial institutions is not within the scope of the Federal Housing Finance Agency's responsibilities. This falls under the jurisdiction of the Federal Reserve. D: The Federal Housing Finance Agency does set limits for conforming loans and borrowing amounts for lower-income groups. This is an important role in ensuring fair and affordable housing opportunities for low-income individuals and families.