Finance
The secondary mortgage market primarily involves:
AOriginating new mortgage loans to borrowers
BBuying and selling existing mortgage loans and mortgage-backed securities✓ Correct
CProviding construction loans for new homes
DRegulating mortgage lending standards
Explanation
The secondary mortgage market (dominated by Fannie Mae, Freddie Mac, and Ginnie Mae) purchases mortgage loans from originators, packages them into mortgage-backed securities, and sells them to investors, providing liquidity for new lending.
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