If mortgage lenders immediately sell the loan they originate to the secondary market, how do they make money on mortgages? by purchasing the mortgages again once they have been securitized by being given government grants to sell the mortgages on the secondary market through the interest collected through the origination fees and the premium paid by the secondary market for the interest rate

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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If mortgage lenders immediately sell the loan they originate to
the secondary market, how do they make money on
mortgages?
by purchasing the mortgages again once they have been securitized
by being given government grants to sell the mortgages on the
secondary market
through the interest collected
through the origination fees and the premium paid by the secondary
market for the interest rate
Transcribed Image Text:If mortgage lenders immediately sell the loan they originate to the secondary market, how do they make money on mortgages? by purchasing the mortgages again once they have been securitized by being given government grants to sell the mortgages on the secondary market through the interest collected through the origination fees and the premium paid by the secondary market for the interest rate
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