Finance

In Ohio, a 'portfolio loan' is one that the lender:

ASells to Fannie Mae after origination
BKeeps in its own loan portfolio rather than selling on the secondary market✓ Correct
CInsures with private mortgage insurance
DSecuritizes into a mortgage-backed security

Explanation

A portfolio loan is kept by the originating lender in its own loan portfolio. Because it is not sold to the secondary market, the lender can set its own underwriting criteria, often allowing non-conforming terms.

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