Finance
When a mortgage lender sells a loan on the secondary market, the original lender:
ALoses all interest in the loan immediately
BReplenishes funds to originate new loans while potentially retaining the loan servicing✓ Correct
CMust refund any fees collected from the borrower
DIs required to notify the borrower before the sale
Explanation
Selling loans on the secondary market allows lenders to replenish their capital to make new loans. The lender may retain servicing rights (collecting payments, managing escrow) even after selling the loan.
Related New York Finance Questions
- In New York, a 'short sale' occurs when:
- In New York, which of the following is true about a 'short sale'?
- A second mortgage is subordinate to the first mortgage, meaning:
- NYC's Additional Mortgage Recording Tax is paid by:
- What is the purpose of an escrow account held by a mortgage lender?
- A buyer takes out a $300,000 mortgage at 6% annual interest. What is the first month's interest charge?
- Which loan type is guaranteed by the U.S. Department of Veterans Affairs and requires no down payment for eligible veterans?
- Which government-sponsored enterprise (GSE) purchases conventional conforming mortgages on the secondary market?
Practice More New York Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New York Quiz →