These entities worked as second-party consolidators by purchasing loans and reselling them to investors.
A)The Federal National Mortgage Association (Fannie Mae)and the Federal Home Loan Mortgage Corporation (Freddie Mac)
B)Structured investment vehicles (SIVs)
C)Credit rating agencies
D)Investment banks
E)All of the above

Question

Quizplus · Accepted Answer

The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) are government-sponsored enterprises (GSEs) that buy mortgages on the secondary market, pool them, and sell them as mortgage-backed securities to investors on the open market. This process provides liquidity, stability, and affordability to the mortgage market.

These Entities Worked as Second-Party Consolidators by Purchasing Loans and Reselling