Finance
In Washington, a 'portfolio loan' is one that a lender:
ASells immediately to Fannie Mae or Freddie Mac
BKeeps on its own books rather than selling in the secondary market, often allowing more flexible underwriting✓ Correct
CRequires a portfolio of assets as collateral
DProvides to multiple borrowers simultaneously
Explanation
A portfolio loan is originated and held by the lender in its own loan portfolio rather than being sold in the secondary market. This allows the lender to use more flexible underwriting criteria that may not conform to Fannie Mae/Freddie Mac guidelines.
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