PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
The secondary mortgage market is where existing mortgage loans and mortgage-backed securities are purchased, sold, pooled, or securitized, providing liquidity that helps originators make new loans.
Financing
Mortgage markets
Define, distinguish, apply, retrieve
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PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEBuild the complete exam definition
Learn the rule, separate it from the nearest distractor, then apply it to a Georgia fact pattern.
What does Secondary mortgage market mean?
The secondary mortgage market is where existing mortgage loans and mortgage-backed securities are purchased, sold, pooled, or securitized, providing liquidity that helps originators make new loans.
How do you separate the nearest exam answer?
The secondary market deals in existing loans. The primary market is the origination transaction between the borrower and lender.
What changes or stays the same in Georgia?
The national market structure applies to Georgia loans. Sale of the note after closing does not mean the borrower obtained a new loan in the secondary market.
A lender sells a pool of recently originated conforming mortgages to an investor and uses the proceeds to fund more loans.
The borrower may send payments to a servicer after a loan sale, but servicing and ownership are separate roles.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDERetrieve the rule under exam conditions
Answer before reading the explanation. Then explain why every distractor belongs to a different term.
Six months after closing, a Georgia borrower gets a letter saying the loan was sold to an investor and a new company will collect the payments. What does the sale reflect?
- A
A refinance in the primary market
- B
A new loan made to the borrower
- C
Activity in the secondary mortgage market
- D
A novation that needs the borrower's consent
Buying and selling existing loans happens in the secondary mortgage market, which gives lenders cash to make new loans. The borrower did not get a new loan, and the original note terms still apply. The lender's rights under the note can be sold without the borrower's consent, so no novation is involved.
Mark each box only when you can perform the skill without looking.
I can define the term in one precise sentence.
I can separate it from the closest look-alike.
I can explain the Georgia rule or confirm that the national rule applies.
I can answer the practice check and explain every option.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEConnect the term to the wider exam
Use these relationships to move from isolated recall to a connected exam model.
Financing complete lesson
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