Florida Real Estate Practice Exam 2026 – The Complete All-in-One Guide to Master Your Exam Success!

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Which of the following is a characteristic of the primary mortgage market?

It earns money from buying packages of loans.

It's prohibited from making money by collecting fees from borrowers.

It's required to sell loans on the secondary market.

It works directly with borrowers to fund loans.

The primary mortgage market is where borrowers directly obtain home loans from lenders such as banks, credit unions, and mortgage companies. It's characterized by the direct interaction between borrowers and lenders for the purpose of funding loans. Therefore, options A, B, and C are incorrect because they do not reflect this direct interaction between borrowers and lenders. Option A refers to the secondary mortgage market, where lenders may sell packages of loans as a source of income. Option B mentions prohibited actions, which are not relevant to the characteristics of the primary mortgage market. Option C is incorrect because loans in the primary market are not required to be sold on the secondary market.

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