Finance
In Minnesota, the secondary mortgage market is important because it:
AIssues new mortgages directly to homebuyers
BPurchases existing mortgages from primary lenders, freeing up capital for new loans✓ Correct
CRegulates interest rates for all Minnesota lenders
DProvides free mortgage counseling to buyers
Explanation
The secondary mortgage market (Fannie Mae, Freddie Mac, Ginnie Mae) buys mortgages from primary lenders (banks, credit unions, mortgage companies), providing liquidity. This allows primary lenders to originate more loans. Most conventional Minnesota mortgages are sold into the secondary market.
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