Final answer:
No, Fannie Mae, Freddie Mac, and Ginnie Mae are not the only entities that purchase real estate loans in the secondary market; other private institutions also participate. Changes in banking laws made it simpler for institutions to securitize and sell mortgage loans, including subprime loans.
Step-by-step explanation:
The entities Fannie Mae, Freddie Mac, and Ginnie Mae are not the only entities that make real estate loans available for purchase on the secondary market. There are other private institutions such as investment banks and private lenders that also securitize mortgage loans. While these government-sponsored enterprises (GSEs) play a significant role in the secondary mortgage market, the presence of private players means that the answer to the question is (b) No.
Changes in banking and finance law have made it easier for a variety of financial institutions to offer mortgage loans, which they can then securitize and sell. This has led to an increased willingness among lenders to offer subprime loans, characterized by lower down-payments and less scrutiny of the borrower's ability to repay. Such loans, when securitized, can be purchased by both government-sponsored and private entities within the secondary market.