Finance
The 'secondary mortgage market' in Montana real estate refers to:
AThe market for second mortgages and home equity loans
BThe market where existing mortgage loans are bought and sold between lenders, investors, and entities like Fannie Mae and Freddie Mac✓ Correct
CThe Montana state government's mortgage lending program
DRural Montana's informal lending market
Explanation
The secondary mortgage market is where existing mortgage loans are bought and sold. Entities like Fannie Mae, Freddie Mac, and Ginnie Mae purchase conforming loans from lenders, providing liquidity to enable more lending.
Related Montana Finance Questions
- Under Regulation Z (TILA), Montana lenders must provide the loan estimate to a borrower within how many business days of receiving a completed loan application?
- Private mortgage insurance (PMI) is typically required when:
- A Montana ranch buyer is assuming an existing loan. Which statement is true about a loan assumption?
- When a Montana buyer obtains a conventional loan, the lender typically requires private mortgage insurance (PMI) when the loan-to-value ratio exceeds:
- The secondary mortgage market primarily serves to:
- Under the Truth in Lending Act (TILA), the Annual Percentage Rate (APR) disclosed to Montana borrowers:
- A Montana lender requires a title insurance commitment (binder) before funding a loan because:
- A construction loan in Montana typically:
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