Finance
Which of the following best describes the secondary mortgage market?
AThe market for second mortgages
BWhere lenders sell mortgages to investors to replenish funds for new loans✓ Correct
CThe market for mortgage refinancing
DWhere buyers and sellers negotiate mortgage terms
Explanation
The secondary mortgage market is where lenders sell existing mortgages to investors (Fannie Mae, Freddie Mac, Ginnie Mae). This replenishes the lender's funds so they can make new loans.
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