A major challenge for banks with lots of mortgage loans is a lack of liquidity. The...

A major challenge for banks with lots of mortgage loans is a lack of liquidity. The solution to this problem has been the emergence of

a.
a primary mortgage market.

b.
mortgage insurance.

c.
liquid mortgages.

d.
a secondary mortgage market.

Expert Solution

Option D

Explanation: A secondary mortgage market is a market in which home loans and servicing rights are bought and sold by lenders and investors. It provides liquidity to mortgage loans.

Rahul Sunny answered 2 years ago

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A major challenge for banks with lots of mortgage loans is a lack of liquidity. The...

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	a.	a primary mortgage market.
	b.	mortgage insurance.
	c.	liquid mortgages.
	d.	a secondary mortgage market.