Question

The primary function of the federal national mortgage association (FNMA) is to:

A) Establish current mortgage risk in terms of the general United States economic situation
B) Buy mortgages in a secondary mortgage market
C) Coordinate all mortgage activity related to programs for lower-income families
D) Assure fair and legal practice in the mortgage field

Answer 1

The primary function of the Federal National Mortgage Association (FNMA) is to buy mortgages in a secondary mortgage market.

Step-by-step explanation:

The primary function of the Federal National Mortgage Association (FNMA), also known as Fannie Mae, is to buy mortgages in a secondary mortgage market. FNMA is a government-sponsored enterprise that purchases mortgage loans from lenders, such as banks and credit unions, and packages them into mortgage-backed securities (MBS) for sale to investors. By buying these mortgages, FNMA provides liquidity to the mortgage market and helps facilitate homeownership by making funds available for new loans.