Alabama Real Estate Practice Exam 2026 – All-in-One Guide to Master Your Real Estate License!

Secondary market refers to a market where existing mortgages are bought and sold by financial institutions such as banks and investment firms. The incorrect options, A and B, are examples of tasks performed in the primary market - where new loans are originated and insured. Option D, providing legal advice on mortgages, is unrelated to the role of the secondary market, which mainly deals with the trading of existing mortgages.