Finance
The secondary mortgage market in Kentucky (Fannie Mae, Freddie Mac) provides liquidity by:
AMaking direct loans to Kentucky homebuyers
BPurchasing mortgages from lenders, freeing up funds for new loans✓ Correct
CSetting interest rates for all mortgages
DRegulating mortgage lenders in Kentucky
Explanation
The secondary mortgage market (Fannie Mae, Freddie Mac, Ginnie Mae) purchases mortgages from primary lenders, providing lenders with fresh capital to make additional loans.
Related Kentucky Finance Questions
- A Kentucky commercial mortgage for a property with a cap rate of 6.5% and a DCR requirement of 1.25 means the NOI must be at least:
- In a Kentucky seller-financed transaction, the seller who takes back a mortgage must comply with:
- Private mortgage insurance (PMI) is typically required when:
- In Kentucky, a deficiency judgment after foreclosure means:
- In Kentucky, a conventional mortgage that meets Fannie Mae and Freddie Mac guidelines is called a:
- A borrower takes out a 30-year fixed-rate mortgage of $240,000 at 6% annual interest. What is the approximate annual interest in the first year?
- A Kentucky homeowner's mortgage is paid off and the lender issues a satisfaction of mortgage. The homeowner should:
- What federal law requires lenders to provide a Loan Estimate within three business days of receiving a mortgage application?
Practice More Kentucky Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kentucky Quiz →