Finance
What is 'secondary mortgage market' and why does it affect Hawaii home buyers?
AA. The market for second mortgages and home equity loans
BB. The market where mortgage loans are bought and sold among investors, affecting the availability and terms of mortgages to consumers✓ Correct
CC. Secondary financing for vacation homes
DD. The market for commercial mortgage loans in Hawaii
Explanation
The secondary mortgage market (including Fannie Mae, Freddie Mac, and Ginnie Mae) purchases mortgages from lenders, providing capital for new loans. This market's standards (conforming loan limits, underwriting guidelines) directly affect what types of loans Hawaii borrowers can get and at what rates.
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