Finance
The secondary mortgage market primarily functions to:
AOriginate new mortgage loans directly to borrowers
BRegulate interest rates on home loans
CBuy existing mortgage loans from primary lenders, providing liquidity to the mortgage market✓ Correct
DInsure mortgage loans against default
Explanation
The secondary market (Fannie Mae, Freddie Mac, Ginnie Mae) purchases loans from primary lenders, freeing up capital so those lenders can make more loans. This provides liquidity to the mortgage market nationwide.
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