Wisconsin Real Estate Sales Practice Exam

Which of the following is part of the secondary market in real estate?

1. Fannie Mae

2. First American Title

3. American Equity Mortgage

4. Chase Bank

The correct answer is: Fannie Mae

Fannie Mae is a crucial component of the secondary market in real estate, which primarily involves the buying and selling of mortgage-backed securities and the refinancing of home loans. The secondary market allows lenders to sell mortgages to investors, thereby freeing up capital to issue new loans. Fannie Mae, or the Federal National Mortgage Association, plays a pivotal role in this ecosystem by purchasing mortgages from lenders, which helps to ensure a steady flow of funding for home loans. In contrast, First American Title provides title insurance and related services, serving more in a primary transaction context rather than the secondary market. American Equity Mortgage is a mortgage lender focused on originating loans, and Chase Bank primarily operates within the primary market by providing banking and loan services. Thus, Fannie Mae stands out as the correct answer due to its direct involvement in the secondary market’s operations.