Freddie Mac and Ginnie Mae were organized to provide
A) a primary market for mortgage transactions.
B) liquidity for the mortgage market.
C) a primary market for farm loan transactions.
D) liquidity for the farm loan market.
E) a source of funds for government agencies.

Question

Quizplus · Accepted Answer

Freddie Mac and Ginnie Mae were established to provide liquidity for the mortgage market, making it easier for financial institutions to issue more home loans by purchasing mortgages from lenders and either holding them in their portfolios or packaging them into mortgage-backed securities that can be sold. This process helps to ensure that lenders have the funds necessary to offer more mortgages to consumers.

Freddie Mac and Ginnie Mae Were Organized to Provide