Tennessee Real Estate Exam Practice Question
The secondary mortgage market buys mortgages from
Correct Answer: B
Rationale: The secondary mortgage market primarily purchases mortgages from banks, which originate loans and then sell them to free up capital for new lending.
Option A, retirement funds, typically invest in mortgage-backed securities rather than directly selling mortgages. Option C, insurance companies, may also invest in mortgage-backed securities, but they are not primary sellers of mortgages in the secondary market. Option D, the Treasury Department, does not sell mortgages; its role is more about regulating and supporting housing finance rather than participating in the secondary mortgage market directly.
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