Which organization is known for its role in the secondary mortgage market?

Fannie Mae is recognized for its crucial role in the secondary mortgage market. This government-sponsored enterprise (GSE) was established to increase the availability of mortgage credit by buying loans from lenders. By purchasing these loans, Fannie Mae allows lenders to free up capital, enabling them to issue more loans to homebuyers. This process helps stabilize the mortgage market and ensures a continuous flow of funds for home financing.

In contrast, the other organizations listed serve different purposes. HUD (the Department of Housing and Urban Development) primarily focuses on housing policies and programs that benefit the public, particularly in areas like affordable housing and fair housing enforcement. The National Association of Realtors (NAR) is a professional trade organization for real estate agents, advocating for real estate professionals and promoting ethical practices in the industry. Meanwhile, multiple listing services (MLS) are databases used by real estate brokers to share information about properties for sale, ensuring collaborative efforts in real estate transactions.

Understanding these roles is essential in the context of the real estate market and how different entities contribute to its functioning.