Finance
What is the 'secondary mortgage market' and why is it important in Delaware?
AThe market for second mortgages on Delaware properties
BThe market where mortgage loans are bought and sold after origination — Fannie Mae, Freddie Mac, and Ginnie Mae purchase mortgages from Delaware lenders, providing liquidity that allows lenders to make new loans✓ Correct
CDelaware's second-largest mortgage lender
DA market for distressed mortgages in default or foreclosure
Explanation
The secondary mortgage market is where originated mortgages are sold to investors. Fannie Mae and Freddie Mac purchase conventional loans; Ginnie Mae pools FHA/VA loans. This market provides liquidity — Delaware lenders can sell their loans, replenish capital, and make new loans. Without the secondary market, mortgage availability would be far more limited and rates higher.
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