Finance
What is 'secondary mortgage market' in the context of Rhode Island lending?
AThe market for second mortgages in Rhode Island
BThe market where existing mortgage loans are bought and sold between financial institutions and investors, providing lenders with liquidity✓ Correct
CThe second round of loan applications after denial
DA marketplace for commercial real estate loans
Explanation
The secondary mortgage market is where lenders sell their originated mortgage loans to investors (like Fannie Mae, Freddie Mac, Ginnie Mae) or other financial institutions, freeing up capital to make more loans. This is essential for maintaining liquidity in the primary mortgage market.
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