Final answer:
One option afforded to lenders by Fannie Mae is to securitize their mortgage loans and sell them as bonds in the secondary loan market. This allows lenders to transfer the risk of loan defaults to investors who purchase these mortgage-backed securities (MBS), freeing up capital for more loans and reducing exposure to potential losses.
Step-by-step explanation:
Another option afforded to lenders by Fannie Mae is to securitize their mortgage loans and sell them as bonds in the secondary loan market.
This allows lenders to transfer the risk of loan defaults to investors who purchase these mortgage-backed securities (MBS).
By selling the loans, lenders can free up capital to make more loans and reduce their exposure to potential losses.