Finance
The secondary mortgage market involves:
ALenders making new loans directly to borrowers
BInvestors buying and selling existing mortgage loans✓ Correct
CGovernment setting interest rates for all mortgages
DSellers providing financing directly to buyers
Explanation
The secondary mortgage market is where existing mortgage loans are bought and sold. Entities like Fannie Mae (FNMA) and Freddie Mac (FHLMC) buy mortgages from original lenders, providing lenders with funds to make new loans.
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