Since mortgages are rarely sold in the secondary market, they are valued by institutional investors only at maturity.

Question

Quizplus · Accepted Answer

Mortgages are commonly sold in the secondary market, where institutional investors, government-sponsored enterprises, and private investors can buy and sell them based on their current value. The value of mortgages can change based on various factors, such as interest rates, creditworthiness of borrowers, and changes in the housing market. Therefore, mortgages are not only valued at maturity but also throughout their terms.

Since Mortgages Are Rarely Sold in the Secondary Market, They