Finance
A Washington lender sells a mortgage loan in the secondary market to Fannie Mae. The lender continues to collect mortgage payments from the borrower and manages the loan account. In this arrangement, the lender is acting as a:
AMortgage broker
BCorrespondent lender
CMortgage servicer✓ Correct
DWarehouse lender
Explanation
When a lender sells a loan to the secondary market (like Fannie Mae) but continues to collect payments and manage the loan account, the lender is acting as the mortgage servicer. The servicer is paid a servicing fee for handling payment processing, escrow accounts, and customer service.
Related Washington Finance Questions
- Which type of loan program is specifically designed to help Washington veterans purchase homes with no down payment?
- In Washington, which of the following best describes a 'hard money loan'?
- In Washington, private mortgage insurance (PMI) on a conventional loan must be automatically cancelled when the borrower's equity reaches what percentage under the Homeowners Protection Act?
- What is the purpose of title insurance when a lender requires it for a mortgage loan?
- Under Washington law, a deed of trust lender who completes non-judicial foreclosure (trustee's sale) generally:
- In Washington, home equity lines of credit (HELOCs) are secured by:
- In Washington real estate, a 'participation mortgage' is one where:
- In Washington, a 'purchase money mortgage' is one where:
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →