Finance
Fannie Mae (FNMA) is best described as:
AA federal agency that makes direct mortgage loans to homebuyers
BA government-sponsored enterprise that purchases mortgages in the secondary market✓ Correct
CAn insurance company that insures FHA loans
DA state agency that regulates mortgage lenders
Explanation
Fannie Mae (Federal National Mortgage Association) is a GSE that buys conforming mortgage loans from primary lenders in the secondary market, providing lenders with liquidity to make additional loans.
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