### What is a primary role of a mortgage banker? - [x] To originate and fund residential mortgage loans - [ ] To act exclusively as a borrower - [ ] To provide real estate appraisal services - [ ] To issue mortgage-backed securities directly > **Explanation:** A mortgage banker is primarily responsible for originating and funding loans for primary and secondary residential mortgages. They often use their own funds and may require support from larger institutions. ### How do mortgage bankers typically handle the loans they originate? - [x] **They sell the mortgage to secondary markets and continue servicing it - [ ] They keep the mortgage until it matures - [ ] They transfer the servicing duties to the lender - [ ] They convert the loan into consumer credit card debt > **Explanation:** Mortgage bankers typically sell the mortgage to secondary markets such as insurance companies, Fannie Mae, Freddie Mac, or Ginnie Mae, while continuing to service the loan, inspect the property, and handle escrow until the loan is paid in full. ### Which of the following is NOT typically a part of a mortgage banker's responsibilities? - [ ] Originating the loan - [ ] Funding the loan - [x] **Providing down payment funds for the borrower - [ ] Servicing the loan after it is sold > **Explanation:** Mortgage bankers originate and fund loans, often acting as intermediaries. However, providing down payment funds for the borrower is not within their responsibilities. ### Who might support mortgage bankers in their initial outlay of cash for loans? - [x] **Larger financial institutions - [ ] Independent real estate agents - [ ] The home buyer's employer - [ ] Title insurance companies > **Explanation:** Mortgage bankers may sometimes use financial support from larger institutions to assist with the initial funding of the loans they originate and close. ### Once a mortgage is sold to a secondary market, what role does the mortgage banker typically continue to play? - [ ] They become the borrower - [ ] They manage real estate investments - [x] **They continue to service the loan - [ ] They transfer servicing duties to another mortgage company > **Explanation:** After selling the mortgage to a secondary market, the mortgage banker usually continues to service the loan, including inspecting the property and handling escrow for the secondary investor. ### Who are some common secondary market buyers where mortgage bankers sell their originated loans? - [ ] Car manufacturers - [ ] Local retail stores - [x] **Fannie Mae, Freddie Mac, Ginnie Mae, insurance companies - [ ] Utility companies > **Explanation:** Mortgage bankers typically sell the loans they originate to secondary markets which include Fannie Mae, Freddie Mac, Ginnie Mae, and insurance companies. ### What is the relationship between mortgage bankers and borrowers? - [ ] Mortgage bankers evaluate property values directly - [ ] Mortgage bankers lend money based on personal loans - [x] **Mortgage bankers originate loans and set up financing for borrowers - [ ] Mortgage bankers act as real estate brokers > **Explanation:** Mortgage bankers act as financial intermediaries who originate residential mortgage loans directly with borrowers and set up the initial financing, including bridging them with lenders when necessary. ### What financial transaction characterizes a mortgage banker as distinct from a mortgage broker? - [ ] Issuing shares of stock - [ ] Offering cash advances - [x] **Using their own funds to originate and fund the loan - [ ] Trading mutual funds > **Explanation:** Unlike mortgage brokers, mortgage bankers generally use their own funds to originate and fund loans. ### What is the term used for repackaging a mortgage loan for sale to other investors? - [ ] Underwriting - [ ] Foreclosure - [x] **Secondary market sale - [ ] Equity staking > **Explanation:** Mortgage bankers often repackage mortgage loans and sell them to secondary markets such as Fannie Mae, Freddie Mac, insurance companies, or Ginnie Mae. ### Which entity is NOT a possible purchaser of loans from mortgage bankers in the secondary market? - [ ] Fannie Mae - [ ] Freddie Mac - [ ] Ginnie Mae - [x] **Independent real estate agents > **Explanation:** Independent real estate agents do not purchase loans in the secondary market. Instead, entities like Fannie Mae, Freddie Mac, and Ginnie Mae commonly buy these loans.