Finance
Iowa's secondary mortgage market allows lenders to:
AIssue second mortgages only to existing customers
BSell mortgage loans to investors, replenishing capital to make additional loans✓ Correct
CBypass federal disclosure requirements
DCharge higher rates on rural property loans
Explanation
The secondary mortgage market (Fannie Mae, Freddie Mac, Ginnie Mae) allows lenders to sell originated loans to investors, converting long-term mortgage assets to cash. This replenishes lender capital and increases the availability of mortgage credit in Iowa.
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