Finance

Fannie Mae and Freddie Mac are best described as:

AFederal agencies that make loans directly to consumers
BGovernment-sponsored enterprises (GSEs) that purchase and securitize conforming mortgages✓ Correct
CPrivate insurance companies that insure FHA loans
DState agencies that set mortgage interest rates

Explanation

Fannie Mae and Freddie Mac are GSEs that purchase conforming mortgages from primary lenders, package them into mortgage-backed securities, and sell them to investors, providing liquidity to the market.

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