Free Pennsylvania Real Estate Practice Exam Practice Question
When mortgages are sold after they have been funded, they are considered part of the:
Correct Answer: C
Rationale: Mortgages sold after funding transition into the secondary mortgage market, where they are pooled and traded as securities. This market enhances liquidity and provides lenders with capital to issue more loans.
Option A, the primary mortgage market, refers to the initial creation of loans between borrowers and lenders, not the sale of existing loans.
Option B, the rural housing service, is a specific program aimed at providing housing assistance in rural areas, not a market for trading mortgages.
Option D, the Federal Reserve System, is the central banking system responsible for monetary policy, not directly involved in the buying or selling of mortgages.
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