Finance
Fannie Mae and Freddie Mac primarily support the mortgage market by:
AMaking direct loans to homebuyers
BPurchasing conforming mortgages from lenders, providing liquidity to the primary mortgage market✓ Correct
CInsuring FHA loans against default
DSetting mortgage interest rates for Massachusetts lenders
Explanation
Fannie Mae (FNMA) and Freddie Mac (FHLMC) are government-sponsored enterprises (GSEs) that purchase conforming mortgage loans from primary market lenders, replenishing lenders' capital so they can make more loans.
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