Finance
In Missouri, the secondary mortgage market serves the primary market by:
ASetting interest rates for all mortgages
BPurchasing mortgages from originators, replenishing their capital to make new loans✓ Correct
CInsuring borrowers against default
DSetting lending standards for all lenders
Explanation
The secondary market (Fannie Mae, Freddie Mac, Ginnie Mae, private investors) buys mortgages from primary market lenders, providing liquidity so lenders can originate new loans rather than holding all loans in portfolio.
Related Missouri Finance Questions
- A Missouri seller's 'first right of refusal' clause in a lease gives the tenant:
- A Missouri lender who refuses to make a loan based solely on the racial composition of a neighborhood is engaging in:
- In Missouri, a lender's 'underwriting' process involves:
- Missouri's MHDC (Missouri Housing Development Commission) First Place Loan program offers:
- In Missouri, a 'yield spread premium' (YSP) historically referred to:
- MHDC (Missouri Housing Development Commission) primarily provides:
- Under the CRA (Community Reinvestment Act), Missouri lenders are encouraged to:
- In Missouri, a lender who 'sells' a mortgage in the secondary market transfers to the purchaser:
Practice More Missouri Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Missouri Quiz →