Finance
What is a 'Freddie Mac' (Federal Home Loan Mortgage Corporation)?
AA government agency that directly lends to homebuyers
BA government-sponsored enterprise that purchases and securitizes conventional mortgage loans in the secondary market✓ Correct
CA federal insurance program for mortgage loans
DA nonprofit mortgage counseling agency
Explanation
Freddie Mac (FHLMC) is a government-sponsored enterprise (GSE) that purchases conventional mortgage loans from lenders, packages them into mortgage-backed securities (MBS), and sells them to investors, providing liquidity to the mortgage market.
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