Finance
A Texas lender originates a mortgage and then sells it to Fannie Mae on the secondary market. The lender continues to collect payments from the borrower. This arrangement is called:
AA wrap-around mortgage
BMortgage servicing retained after sale to the secondary market✓ Correct
CA participation mortgage
DA blanket mortgage
Explanation
Mortgage servicing means collecting borrower payments, managing escrow accounts, and handling loan administration. When a lender sells a loan to the secondary market (Fannie Mae, Freddie Mac, etc.) but retains servicing, they continue to interact with the borrower and earn servicing fees while the investor (Fannie Mae) owns the loan.
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