Which organization requires loans for urban renewal projects?

• A. Fannie Mae
• B. Ginnie Mae
• C. Freddie Mac
• D. Maggie Mae

Answer: (B)

The concept being tested is how mortgage financing programs align with government-backed loans used for urban renewal. Ginnie Mae stands out because it guarantees mortgage-backed securities whose underlying loans come from government-insured or guaranteed programs (like FHA or VA). This linkage to government-backed lending makes it the organization most associated with financing urban renewal projects, since the government backing reduces risk for lenders and helps attract capital for redevelopment.

Maggie Mae is not a real agency, and Fannie Mae and Freddie Mac operate in the conventional secondary mortgage market, buying and securitizing loans (though they also interact with government programs, they don’t specifically require or base financing on government-insured loans the way Ginnie Mae does).