Finance
Fannie Mae and Freddie Mac's primary role in the secondary mortgage market is to:
AOriginate FHA and VA loans directly to consumers
BPurchase conforming mortgages from lenders, package them as mortgage-backed securities, and sell to investors✓ Correct
CSet maximum interest rates for residential mortgages
DInsure residential mortgage loans against default
Explanation
Fannie Mae and Freddie Mac purchase conforming mortgage loans from originating lenders, package them into mortgage-backed securities (MBS), and sell them to investors, providing liquidity to the mortgage market.
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