Finance
In Rhode Island, what is the role of Fannie Mae (FNMA) in the real estate market?
AFannie Mae directly originates mortgages for Rhode Island homebuyers
BFannie Mae purchases mortgages from lenders in the secondary market, providing lenders liquidity to make more loans✓ Correct
CFannie Mae regulates mortgage lending in Rhode Island
DFannie Mae insures FHA loans
Explanation
Fannie Mae (Federal National Mortgage Association) operates in the secondary mortgage market, buying conforming mortgages from lenders and packaging them as mortgage-backed securities. This provides lenders with capital to originate new loans.
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