Finance

A West Virginia lender who sells its originated mortgages to Fannie Mae is participating in:

AThe primary mortgage market
BThe secondary mortgage market✓ Correct
CThe federal loan guarantee program
DThe FHA direct lending program

Explanation

The secondary mortgage market is where already-originated loans are bought and sold. Fannie Mae and Freddie Mac purchase mortgages from originators (primary lenders), providing lenders with funds to make new loans.

Related West Virginia Finance Questions

Practice More West Virginia Real Estate Questions

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

Take the Free West Virginia Quiz →