Finance
The secondary mortgage market in the United States is most directly supported by which of the following entities that purchase Vermont mortgages from lenders?
AThe Federal Reserve and U.S. Treasury
BFannie Mae (FNMA) and Freddie Mac (FHLMC)✓ Correct
CThe Vermont Housing Finance Agency only
DVermont commercial banks only
Explanation
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs) that purchase conforming mortgages from lenders, providing liquidity to the secondary mortgage market. This allows Vermont lenders to originate new loans by selling existing ones rather than holding them to maturity.
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