Finance
What is the purpose of the secondary mortgage market?
ATo make second mortgage loans directly to homebuyers
BTo purchase loans from primary lenders, providing lenders with capital to make new loans✓ Correct
CTo regulate interest rates for conventional loans
DTo insure loans against default
Explanation
The secondary mortgage market (dominated by Fannie Mae, Freddie Mac, and Ginnie Mae) purchases loans from primary lenders, replenishing the lenders' capital so they can originate new loans.
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