Finance
The secondary mortgage market serves what function?
AIt lends money directly to homebuyers
BIt buys loans from primary lenders, replenishing funds for new originations✓ Correct
CIt regulates interest rates on all mortgages
DIt insures mortgages against default
Explanation
The secondary mortgage market (e.g., Fannie Mae, Freddie Mac) purchases loans from primary lenders, providing liquidity so lenders can make more loans.
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