Illinois Real Estate 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: The secondary mortgage market involves buying and selling existing mortgage loans, which provides liquidity to lenders. Fannie Mae (FNMA) is a key player in this market, purchasing mortgages from lenders to facilitate more home loans.
In contrast, the Federal Housing Administration (FHA) and the Veterans Administration (VA) primarily provide loan guarantees and insurance, not secondary market activities. The Farmers Home Administration (FmHA) also focuses on direct lending rather than engaging in the buying and selling of loans. Thus, only Fannie Mae fits the definition of a secondary market lender.
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