Finance
What is the 'secondary mortgage market' and how does it affect Idaho homebuyers?
ASecond mortgage lending in Idaho
BThe market where lenders sell existing mortgage loans to investors (Fannie Mae, Freddie Mac, Ginnie Mae), freeing capital for new lending and standardizing underwriting guidelines in Idaho✓ Correct
CA market for refinancing only
DThe market for investment property loans specifically
Explanation
The secondary mortgage market (Fannie Mae, Freddie Mac, Ginnie Mae) buys loans from Idaho lenders, enabling lenders to replenish funds for new loans. Because most Idaho conventional loans are sold to Fannie/Freddie, their underwriting guidelines (loan limits, DTI ratios, appraisal requirements) effectively set standards for most Idaho mortgage lending.
Related Idaho Finance Questions
- Under the Truth in Lending Act (TILA), what must be disclosed to Idaho mortgage borrowers?
- What is a 'jumbo loan' in Idaho mortgage financing?
- A home equity line of credit (HELOC) is BEST described as:
- The note rate (mortgage interest rate) and the annual percentage rate (APR) differ because:
- What is a 'real estate investment trust' (REIT)?
- The Truth-in-Lending Act (TILA) requires lenders to disclose which key information to borrowers?
- A conventional loan with less than 20% down payment typically requires:
- In Idaho, what is 'seller concessions' in a real estate transaction?
Practice More Idaho Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Idaho Quiz →