Final answer:
A formal appraisal is always required when a lender wants to sell a loan to the secondary market. This ensures the property is worth the amount of the loan, which is crucial for determining the value of the security on the secondary market. The option (B) is correct.
Step-by-step explanation:
When a lender wants to sell a loan to the secondary market, what is always required is a formal appraisal. This appraisal is an assessment of the property’s value conducted by a certified professional. The lender uses it to ensure that the property is worth the amount of the loan being issued, which is important for the sale on the secondary market as it impacts the security's value. Unlike an appraisal, a mold remediation history, a home inspection, or a Schedule C, which is a tax form for reporting profits or losses from a business, are not universally required for selling loans to the secondary market.
In the financial capital market, banks have various requirements before making a loan. They require documentation of the borrower's income sources and conduct credit checks. They may also require a cosigner or collateral, such as property or equipment that can be seized if the loan is not repaid. However, these are preparations for the initial loan issuance rather than prerequisites for selling the loan to the secondary market. Therefore, option (B) is correct.