Finance
The secondary mortgage market in West Virginia increases mortgage availability by:
AProviding direct loans to low-income homebuyers
BPurchasing loans from originators, thereby replenishing lender funds to make more new loans✓ Correct
CSetting maximum interest rates to attract more borrowers
DProviding government guarantees on all mortgages made in the state
Explanation
The secondary market (Fannie Mae, Freddie Mac, Ginnie Mae) purchases loans from primary lenders, providing them with cash to make new loans. This increases the flow of mortgage credit and keeps mortgage rates more stable.
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