Finance
In Tennessee, the secondary mortgage market involves:
ALenders making second mortgages only
BThe buying and selling of existing mortgages between investors, providing liquidity to primary lenders✓ Correct
CLending for second homes only
DGovernment regulation of mortgage rates
Explanation
The secondary mortgage market allows primary lenders to sell their originated loans to investors (like Fannie Mae, Freddie Mac, or private investors), freeing up capital to make new loans.
Related Tennessee Finance Questions
- In Tennessee, 'private mortgage insurance' (PMI) is typically required when the buyer's down payment is less than:
- Predatory lending refers to:
- The secondary mortgage market includes institutions such as Fannie Mae and Freddie Mac, which primarily:
- The concept of leverage in real estate investing means:
- A 'points' buy-down in a mortgage means the borrower pays upfront to:
- Loan flipping — repeatedly refinancing a loan — is considered predatory because it:
- Private Mortgage Insurance (PMI) is typically required when:
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