FinanceQuestion 79 of 120
The secondary mortgage market, including entities like Fannie Mae and Freddie Mac, primarily functions to:
a.Buy loans from lenders, providing liquidity so lenders can make more loans
b.Directly originate loans to individual borrowers at retail
c.Set property tax rates
d.License real estate agents
Explanation
The secondary mortgage market buys existing loans from primary lenders, giving those lenders fresh capital to make new loans and improving liquidity. Fannie Mae and Freddie Mac are major participants. This market helps standardize lending and keep funds flowing.
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