Finance
The primary market in mortgage financing refers to:
AThe sale of mortgage-backed securities to investors
BLenders making direct loans to borrowers✓ Correct
CFannie Mae and Freddie Mac purchasing loans
DThe Federal Reserve setting interest rates
Explanation
The primary mortgage market is where lenders (banks, credit unions, mortgage companies) make direct loans to borrowers. The secondary market is where those loans are sold to investors.
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