When funds are sought for single family mortgage loans those funds are usually provided by secured collateral in the form of treasury notes or existing equity in residential or commercial property.
Is this true or false ?
Take your time. The solution is posted below the wildlife photo.
Funds for mortgage loans for single-family residences comes from the primary mortgage market and includes savings deposits and deposits in savings and loan associations and from Fannie Mae, which is the secondary mortgage market which obtains capital from investors who invest in pools of mortgages.
The capital from the investment pools flows back into the primary mortgage market so the banks will have more money to lend in the primary market.