Finance
The secondary mortgage market in Arizona primarily functions to:
AOriginate new loans to borrowers
BPurchase existing loans from primary lenders, providing liquidity for more lending✓ Correct
CRegulate interest rates on mortgages
DInsure mortgages against default
Explanation
The secondary mortgage market purchases loans originated in the primary market from lenders, replenishing their capital so they can make more loans. Key participants include Fannie Mae, Freddie Mac, and Ginnie Mae.
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