Finance
The secondary mortgage market in Alabama allows lenders to:
ACharge higher interest rates on second mortgages
BSell mortgage loans to investors to replenish funds for new loans✓ Correct
CIssue loans to borrowers who have been rejected by primary lenders
DRefinance existing loans at lower rates
Explanation
The secondary mortgage market (Fannie Mae, Freddie Mac, Ginnie Mae) buys mortgage loans from primary lenders. This replenishes lenders' funds, allowing them to make more loans and keep money flowing through the housing market.
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