What is Fannie Mae's primary purpose?
Expanding the secondary mortgage market
Providing direct loans to homebuyers
Regulating the banking industry
Issuing government bonds
Answer
Fannie Mae's primary purpose is to expand the secondary mortgage market by securitizing mortgage loans in the form of mortgage-backed securities (MBS). This allows lenders to reinvest their assets into more lending, effectively increasing the number of lenders in the mortgage market.
The Fannie Mae Quiz: How Well Do You Know this Government-Backed Financial Services Company?
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