Finance

The secondary mortgage market allows lenders to:

AOffer second mortgages to homeowners
BSell originated mortgages to investors, freeing capital to make new loans✓ Correct
CFinance commercial real estate projects
DProvide below-market loans to low-income buyers

Explanation

The secondary mortgage market (Fannie Mae, Freddie Mac, Ginnie Mae) allows lenders to sell their originated mortgage loans to investors, recycling capital so they can continue making new loans.

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