Finance
What is the function of Ginnie Mae (Government National Mortgage Association) in Delaware mortgage markets?
ATo originate government-backed mortgage loans
BTo guarantee securities backed by FHA and VA loans, providing liquidity for government-backed mortgages✓ Correct
CTo insure FHA loans against default
DTo set interest rates for government-backed loans
Explanation
Ginnie Mae guarantees mortgage-backed securities (MBS) backed by FHA, VA, USDA, and other government-guaranteed loans. Its guarantee of timely payment of principal and interest makes these securities attractive to investors, providing liquidity for government-backed mortgages.
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