Which term describes a private organization that buys and sells mortgages with private funds?

Study for the Burk Baker National Test. Use flashcards and multiple choice questions with hints and explanations to prepare effectively. Get ready for your exam!

Freddie Mac fits this description. In the secondary mortgage market, it is a private organization that buys mortgages from lenders, pools them, and then sells mortgage-backed securities to investors using private funds. This structure provides liquidity to lenders and helps finance more home loans, while still operating as a government-sponsored enterprise with implicit backing, not as a government agency. Ginnie Mae is a government agency that guarantees securities, not a private buyer of mortgages; Farm Service Agency is USDA’s farm program agency; Maggie Mae isn’t a real entity.