Finance
The secondary mortgage market in the United States serves primarily to:
ASet interest rates for primary market lenders
BProvide liquidity to primary market lenders by purchasing mortgages✓ Correct
CRegulate lender underwriting standards
DInsure mortgages against borrower default
Explanation
The secondary market (Fannie Mae, Freddie Mac, Ginnie Mae) buys mortgages from primary lenders, freeing up capital for those lenders to make new loans. This creates liquidity and standardizes mortgage products.
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