Finance
What is a 'portfolio loan' in Illinois mortgage lending?
AA loan for purchasing a portfolio of investment properties at once
BA mortgage that a lender keeps in its own portfolio rather than selling on the secondary market; typically has more flexible underwriting✓ Correct
CA loan made using the borrower's investment portfolio as collateral
DA government-backed loan for purchasing properties in an investment portfolio
Explanation
Portfolio loans are mortgages that lenders originate and retain in their own loan portfolios rather than selling to Fannie Mae/Freddie Mac (secondary market). Because these lenders hold the risk themselves, they can offer more flexible terms—non-conforming features, alternative documentation, unusual property types, or exception underwriting.
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