Finance
What is the primary function of the secondary mortgage market in real estate?
ATo originate new mortgage loans to borrowers
BTo provide liquidity by buying and selling existing mortgage loans✓ Correct
CTo regulate interest rates on mortgage loans
DTo insure mortgage loans against default
Explanation
The secondary mortgage market (Fannie Mae, Freddie Mac, Ginnie Mae) provides liquidity to lenders by purchasing mortgage loans, allowing lenders to make new loans with the proceeds.
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