Which of these is an example of a secondary mortgage market lender?

Freddie Mac is an example of a secondary mortgage market lender. These institutions operate by purchasing mortgages from primary lenders like banks and credit unions, providing liquidity and stability to the housing market. They facilitate the flow of funds by allowing primary lenders to sell off their mortgage loans, which helps to free up capital for additional lending.

Fannie Mae also plays a significant role in the secondary mortgage market, similar to Freddie Mac. Both entities buy and guarantee mortgages, making them pivotal in supporting mortgage availability. Understanding the function of these secondary lenders is crucial for anyone involved in real estate, as they impact interest rates and the overall availability of mortgage financing.

In contrast, banks like CitiMortgage and Wells Fargo primarily act as primary lenders, originating loans directly to consumers. They do not play in the secondary market in the same way that Freddie Mac and Fannie Mae do. Therefore, recognizing the role of institutions like Freddie Mac helps clarify what constitutes a secondary mortgage market lender.