California Real Estate Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 585

Who can benefit from secondary mortgage markets?

Lenders and investors

Lenders and investors can benefit from secondary mortgage markets because it allows them to sell the mortgages they own, freeing up capital for them to use to make more loans. This also allows them to reduce their risk by diversifying their portfolio. Option B is incorrect because new home buyers do not directly benefit from secondary mortgage markets. Option C is incorrect because although the federal government may play a role in regulating or providing support for secondary markets, they do not directly benefit from them. Option D is incorrect because banks can both sell and purchase mortgages in secondary markets, so they can benefit from them as well.

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Only new home buyers

Only the federal government

Only banks

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