Finance
What is the primary difference between Fannie Mae and Freddie Mac?
AFannie Mae deals only with VA loans; Freddie Mac handles FHA loans
BBoth purchase conventional conforming loans on the secondary market; Fannie Mae buys from larger banks, Freddie Mac from smaller institutions✓ Correct
CFannie Mae is a government agency; Freddie Mac is private
DThey serve different geographic markets
Explanation
Both Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) purchase conforming conventional loans on the secondary market; Fannie Mae traditionally from larger lenders, Freddie Mac from smaller thrifts.
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