Which of the following is NOT one of the four channels of the US mortgage system?

Home equity lending is not considered one of the four primary channels of the U.S. mortgage system. The four channels typically recognized include depository lending, conforming conventional (GSE), non-conforming conventional (private security), and government-insured loans.

Depository lending involves loans made by banks and savings institutions. Conforming conventional loans are those that meet the underwriting criteria set by government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac. Non-conforming conventional loans do not meet those criteria and are usually offered by private lenders, often against higher risks.

Home equity lending, while an important aspect of mortgage financing, primarily relates to loans taken out on the equity of an existing property and typically does not function as a primary channel in the broader mortgage system. It represents a specific type of financing rather than a channel through which mortgages are processed and secured in the primary market.