Finance
What is the primary function of the secondary mortgage market?
ATo originate new mortgage loans directly to consumers
BTo buy mortgage loans from lenders, freeing up capital for new loans✓ Correct
CTo regulate mortgage interest rates
DTo insure mortgage loans against default
Explanation
The secondary mortgage market (including entities like Fannie Mae and Freddie Mac) purchases existing loans from lenders. This replenishes lenders' funds so they can make additional mortgage loans.
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