Finance
The 'secondary mortgage market' refers to:
AA marketplace where second mortgages are originated by banks
BThe market where existing mortgage loans are bought and sold between investors and institutions such as Fannie Mae and Freddie Mac✓ Correct
CSubprime lenders who make second-chance mortgage loans
DMortgage brokers who represent multiple lenders
Explanation
The secondary mortgage market is where already-originated mortgage loans are bought and sold between investors. Fannie Mae, Freddie Mac, and Ginnie Mae are major participants, providing liquidity that enables primary market lenders to make more loans.
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