What is the 'secondary mortgage market'?
Why The market where lenders sell mortgage loans to investors, providing lenders with funds to make new loans Is Correct
Answer B: The market where lenders sell mortgage loans to investors, providing lenders with funds to make new loans
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
Key Finance Terms in This Question
People Also Study
Related California Questions
- The secondary mortgage market primarily functions to:Finance
- Which federal law prohibits lenders from discriminating against borrowers based on race, color, religion, national origin, sex, familial status, or disability when making mortgage loans?Finance
- Which of the following is NOT a qualifying factor used by lenders when underwriting a residential mortgage loan?Finance
- Under the federal Homeowners Protection Act, when must lenders automatically cancel PMI on a residential mortgage?Finance
Key Terms to Know
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Math Concepts
Study This Topic
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →