Question

Which of the following statements about mortgage markets is/are true?

I. Mortgage companies service more mortgages than they originate.
II. Servicing fees typically range from 2% to 4%.
III. Most mortgage sales are with recourse.
IV. The government is involved in the residential mortgage markets.

Answer 1

The correct answers are: I. Mortgage companies service more mortgages than they originate. And IV. The government is involved in residential mortgage markets.

Step-by-step explanation:

There are two types of mortgage markets. The primary type has to do with someone who is called the primary lender and he or she is in charge of making a loan to a borrower. The second type, which is the secondary mortgage market deals with the bank that helps investors to get a loan that is resold. It is seen that is these cases, Mortgage companies service more mortgages than they originate and also the government is involved in the mortgage markets.