Tennessee Real Estate License 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 investors to free up capital for new loans.
Option A, retirement funds, typically invest in mortgage-backed securities but do not originate mortgages themselves. Option C, insurance companies, may also invest in these securities but are not the primary sellers of mortgages. Option D, the Treasury Department, is involved in housing finance through government-sponsored enterprises but does not sell mortgages directly. Thus, banks are the main source of mortgages for the secondary market.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now