Finance
An Arizona lender who originates loans and immediately sells them in the secondary market is engaging in the:
ADirect lending model
BOriginate-to-distribute model, allowing more capital to be recycled for new loans✓ Correct
CPortfolio lending model
DHard money model
Explanation
The originate-to-distribute model involves originating loans and selling them to secondary market investors (Fannie, Freddie, investors), which replenishes capital. Portfolio lenders retain loans and bear the risk themselves.
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