Finance
A mortgage held 'in portfolio' by a Pennsylvania community bank means:
AThe bank has sold the mortgage to Fannie Mae
BThe bank retains the loan in its own loan portfolio rather than selling it in the secondary market✓ Correct
CThe mortgage is part of a diversified investment fund
DThe loan was originated by multiple lenders jointly
Explanation
Portfolio loans are kept by the originating bank rather than sold to Fannie Mae, Freddie Mac, or other secondary market investors. Community banks often portfolio loans that don't meet conforming guidelines — non-standard properties, foreign national borrowers, or complex income situations. They can set their own underwriting standards for portfolio loans.
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