Respuesta :
All of the following are considered advantages associated with the secondary mortgage market except it is a major source of financing for secondary schools. The correct option is (b).
What do you mean by the secondary mortgage market?
Mortgages are bought and sold in the secondary mortgage market, a sizable real estate market, by financial institutions and investors.
The typical mortgage holder won't be aware of what's going on behind the scenes, but eventually their loan will land up on the secondary mortgage market.
Large investors in mortgages include foreign governments, pension funds, insurance firms, banks, GSEs, and hedge funds.
Based on varied levels of credit quality and interest rate risk, MBS, CMOs, ABSs, and CDOs provide investors with a wide range of potential yields.
The system promotes financial exchange, which makes it easier for borrowers to acquire the financing they require for a house purchase.
Mortgage interest rates are also kept down and more stable through the secondary mortgage market.
Therefore, all of the following are considered advantages associated with the secondary mortgage market except it is a major source of financing for secondary schools.
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