Which of the following does not buy mortgages?
- the secondary market
The answer is C. FNMA (Fannie Mae) and FHLMC (Freddie Mac) both buy mortgages and sell them in the secondary market. The secondary market exists just so that people can buy mortgages. GNMA (Ginnie Mae), however, just guarantees that payments will be made to buyers of mortgages, but does not actually buy mortgages.