The Origination of a Home Mortgage Loan Is Considered to Be

Multiple Choice

The origination of a home mortgage loan is considered to be a

A) primary transaction, because this is the FI's primary source of business.
B) secondary transaction, because mortgages are typically resold in the secondary market.
C) primary transaction, because the mortgage note is a newly created financial asset.
D) secondary transaction if the sale is for an existing home and a primary transaction if it is for a new home.
E) derivative transaction because the value of the mortgage note depends on the underlying value of the home.