Finance
The secondary mortgage market's primary function is to:
AOriginate new mortgage loans to borrowers
BPurchase existing mortgages from lenders, freeing capital for new loans✓ Correct
CRegulate mortgage interest rates
DProvide mortgage insurance
Explanation
The secondary mortgage market (including Fannie Mae, Freddie Mac, and Ginnie Mae) buys mortgages from lenders. This replenishes lenders' capital so they can originate new loans, maintaining liquidity in the mortgage market.
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