Finance
The secondary mortgage market primarily functions to:
AIssue new mortgage loans to homebuyers
BPurchase existing mortgage loans from lenders, providing lenders with new capital to lend✓ Correct
CRegulate mortgage interest rates
DInsure FHA loans
Explanation
The secondary market (Fannie Mae, Freddie Mac, Ginnie Mae) buys mortgages from primary lenders, freeing up capital for new loans and standardizing lending practices.
Related New Jersey Finance Questions
- Under the Home Mortgage Disclosure Act (HMDA), NJ lenders covered by HMDA must report loan data to identify:
- Under RESPA, the Loan Estimate must be provided to a mortgage applicant within:
- The debt service coverage ratio (DSCR) is used by NJ commercial lenders and is calculated as:
- The debt service coverage ratio (DSCR) is used by commercial lenders to evaluate whether:
- The maximum conventional loan-to-value (LTV) ratio that avoids private mortgage insurance (PMI) is typically:
- A NJ senior homeowner age 62 or older who wants to convert home equity into income without selling may benefit from a:
- In New Jersey, 'private mortgage insurance' (PMI) on a conventional loan is typically required when the LTV exceeds:
- NJ's mortgage recording tax applies to mortgages recorded on NJ real property. This tax is:
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →