FinanceQuestion 88 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 new loans
b.Directly lend money to homebuyers at closing
c.Set property tax rates nationwide
d.License real estate agents
Explanation
The secondary market buys existing mortgages from primary lenders, giving those lenders fresh capital to originate more loans. This improves the flow of mortgage money and helps standardize lending.
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