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Is an Insurance company part of the primary mortgage market?

A) Yes
B) No
C) It depends
D) Not sure

User Aury
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1 Answer

5 votes

Final answer:

Insurance companies are not part of the primary mortgage market; they might invest in mortgages or lend cash from paid-out policies but do not originate loans.

Step-by-step explanation:

An insurance company is not part of the primary mortgage market. The primary mortgage market is where borrowers can obtain a mortgage loan from a primary lender such as banks, credit unions, or mortgage brokers. Insurance companies do not originate mortgage loans but may invest in mortgages in the secondary market. However, a life insurance company, after paying out policies, may have cash that it lends out, which can include providing loans secured by real estate. Even so, this does not make them a part of the primary mortgage market where loans are originally made.

User Mycargus
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