Which of the following is NOT typically associated with the secondary mortgage market?

The secondary mortgage market primarily functions as a marketplace where existing mortgage loans are bought and sold, and is heavily involved in the securitization process, which transforms these loans into mortgage-backed securities. Enhancing liquidity in the housing market is another critical role, as it helps provide investors with opportunities to invest in real estate without directly owning property.

Approval of new mortgage loans occurs mainly in the primary mortgage market, where lenders evaluate borrower applications and issues loans to homebuyers. This process is distinct from the activities associated with the secondary market, which focuses on the exchange and management of loans that have already been issued instead of generating new financing.

Thus, the approval of new mortgage loans is not an aspect of the secondary mortgage market, making it the correct choice in this context.