Finance
The secondary mortgage market provides liquidity to lenders primarily by:
ASetting maximum mortgage interest rates
BPurchasing mortgages from originating lenders✓ Correct
CInsuring all residential mortgage loans
DProviding down payment assistance to buyers
Explanation
The secondary mortgage market (Fannie Mae, Freddie Mac, Ginnie Mae) buys mortgages from originating lenders, providing them with capital to make new loans and standardizing lending practices nationwide.
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