Tennessee Real Estate License Exam Practice Question
Major sources of real estate financing are lenders in the secondary mortgage market. An example of a lender in the secondary mortgage market is
Correct Answer: B
Rationale: Fannie Mae (FNMA) operates in the secondary mortgage market, purchasing loans from lenders to provide liquidity and stability. This allows lenders to offer more mortgages, enhancing the overall housing market.
The Federal Housing Administration (FHA) and the Veterans Administration (VA) are primary market entities that insure loans but do not operate in the secondary market. Similarly, the Farmers Home Administration (FmHA) focuses on rural development financing and does not engage in secondary market activities. Thus, only Fannie Mae is a true representative of secondary mortgage market lenders.
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