Explain how a mortgage lender may act differently if it intends to resell mortgages in secondary markets instead of holding the mortgages itself
What will be an ideal response?
A lender would be more likely to grant mortgages if it intends to resell the mortgages than if it intends to hold them. Reselling reduces the risk of granting mortgages because lenders no longer need to worry that borrowers will default on their mortgage loans.
Economics
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What are the two critical measures of a nation's economic health?
A) sales and taxes B) wages and raises C) income and spending D) production and income
Economics
Money that we have today can be set aside to purchase things in the future. This function of money is known as
A. medium of exchange. B. unit of accounting. C. store of value. D. standard of deferred payment.
Economics