Finance
Fannie Mae (FNMA) and Freddie Mac (FHLMC) are:
AGovernment agencies that directly lend money to homebuyers
BGovernment-sponsored enterprises (GSEs) that purchase conforming loans in the secondary mortgage market✓ Correct
CInsurance companies that insure mortgage loans
DFederal agencies that regulate interest rates
Explanation
Fannie Mae and Freddie Mac are government-sponsored enterprises that operate in the secondary mortgage market by purchasing conforming mortgage loans from lenders, packaging them into mortgage-backed securities, and selling them to investors.
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