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When using a CLO system, a real estate license holder may

a) Offer loans to clients
b) Originate loans
c) Service loans
d) Invest in mortgage-backed securities

User Sherice
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1 Answer

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Final answer:

In a CLO system, a real estate license holder can invest in mortgage-backed securities but cannot offer, originate, or service loans unless licensed to do so. Increases in the quantity of loans occur when there is a rise in demand and supply.

Step-by-step explanation:

When using a Computerized Loan Origination (CLO) system, a real estate license holder may not typically offer loans to clients, originate loans, or service loans unless they have the necessary additional licensing to do so. Instead, a real estate license holder may only invest in mortgage-backed securities as a form of indirect participation in the mortgage market.

Regarding the changes in the financial market, an increase in the quantity of loans made and received can occur when there is a rise in the quantity of people who want to borrow (a rise in demand) and also when there is a rise in the quantity of people who want to lend (a rise in supply). Thus, options a (a rise in demand) and c (a rise in supply) will result in an increase in the quantity of loans made and received.

User Yedhin
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