1a. which is true of primary mortgage market?

a. It is a place where consumers go to originate mortgages/loans

b. a place where loans are kept for servicing

c. it is a place where loans are kept and not resold

d. it is a place where the requirements for loans and mortgages are determined

1b. what is the most prevent reason that insurance companies invest in mortgages loans?

a. they are a state-regulated rather than federally-regulated industry and do not have the same reserve requirements.

b. their primary product- life insurance- produces excess cash that must be invested to cover reserves that do not have to be paid for longer periods of time.

c. they want AAA securities as a primary investment, and the majority of mortgage-backed securities are AAA rated by Standard & Poor.

d. they can craft their residential mortgage on terms more favorably for consumers because they do not have to follow the same banking regulations for consumer disclosure.