Finance
A 'portfolio loan' in Colorado is:
AA. A loan that is sold immediately to the secondary market
BB. A loan that the lender keeps in its own portfolio rather than selling on the secondary market, allowing more flexible underwriting✓ Correct
CC. A loan for purchasing an investment portfolio of stocks
DD. A government-backed loan requiring strict underwriting
Explanation
A portfolio loan is originated and held by the lender in its own investment portfolio rather than being sold to Fannie Mae, Freddie Mac, or other secondary market investors. Because the lender retains the risk, portfolio loans can be customized for borrowers who don't fit conventional guidelines (e.g., self-employed borrowers, unique properties).
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