### What is the primary intention behind a portfolio lender making mortgage loans? - [x] To keep loans in their own portfolio - [ ] To sell loans on the secondary market immediately - [ ] To provide short-term financing - [ ] To offer loans at the highest interest rates possible > **Explanation:** A portfolio lender’s primary goal is to keep the mortgage loans they make in their own portfolio. This allows them to generate stable, long-term returns from the interest earned on the mortgages, instead of selling them on the secondary market for a one-time profit. ### How do the criteria of a portfolio lender typically differ from those of standard mortgage lenders? - [x] They have their own specific criteria, often more flexible - [ ] They strictly follow the criteria set by federal mortgage regulations - [ ] They use criteria standardized across all lending institutions - [ ] They only offer loans to borrowers with perfect credit > **Explanation:** Each portfolio lender has their own unique criteria, which can be more flexible compared to standard mortgage lenders. This customization allows them to make loans to some borrowers who might be rejected by more conventional lenders. ### What is one reason a property buyer might seek a portfolio lender? - [ ] To find the lowest interest rates available - [x] They do not qualify for the best market rates from standard lenders - [ ] To get a loan guaranteed by the government - [ ] Portfolio lenders only deal with high-end, expensive properties > **Explanation:** Property buyers who do not qualify for the best market rates from standard lenders might seek a portfolio lender. These lenders may offer loans to buyers who are unable to secure favorable terms from traditional lenders due to factors such as lower credit scores or unconventional income sources. ### How do portfolio lenders generally generate returns from their mortgage loans? - [ ] By selling the loans on the secondary market quickly - [x] By keeping the loans and generating long-term interest returns - [ ] By charging exorbitant fees at the time of the loan - [ ] Through government subsidies and financing programs > **Explanation:** Portfolio lenders generate returns primarily by keeping the loans in their portfolio and earning long-term interest revenue from them, rather than selling the loans for immediate profit. ### What differentiates a portfolio lender from a typical mortgage broker in terms of loan handling? - [ ] Portfolio lenders never intend to sell loans, whereas mortgage brokers only sell loans - [x] Portfolio lenders may both keep and sell loans, whereas typical brokers primarily sell loans - [ ] Portfolio lenders are only government institutions, mortgage brokers are private - [ ] Portfolio lenders focus only on commercial properties, not residential mortgages > **Explanation:** While portfolio lenders often keep the loans they make in their own portfolio for long-term returns, they may also sell some loans immediately, much like a typical mortgage broker who primarily facilitates loans intending to sell them. ### Why might a consumer have to actively seek out portfolio lending? - [ ] It is the most commonly offered mortgage option - [ ] Portfolio loans are often advertised widely - [x] It is not a commonly offered option - [ ] Portfolio lenders only operate in rural areas > **Explanation:** Because portfolio lending is not a commonly offered option, consumers often need to actively seek it out, especially if they need the flexibility that comes with custom lending criteria from such lenders.