Finance

The secondary mortgage market in Utah involves:

ASecond mortgages and HELOCs only
BThe buying and selling of existing mortgage loans between lenders and investors like Fannie Mae and Freddie Mac✓ Correct
CLoans made by private individuals to other individuals
DLoans for second homes and vacation properties only

Explanation

The secondary mortgage market is where already-originated loans are bought and sold as investment securities. Fannie Mae, Freddie Mac, and Ginnie Mae are major participants. This provides lenders with liquidity to make new loans.

Related Utah Finance Questions

Practice More Utah Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Utah Quiz →