Final answer:
Fannie Mae and Freddie Mac are secondary markets for mortgages. They buy mortgages from lenders and hold them or package them into mortgage-backed securities to sell to investors.
Step-by-step explanation:
'Fannie Mae' and 'Freddie Mac' are secondary markets for mortgages. They are government-sponsored enterprises that buy mortgages from lenders and then either hold them in their portfolio or package them into mortgage-backed securities to sell to investors. They help to provide liquidity in the mortgage market and promote homeownership by making funds available to lenders so that they can continue to make new mortgage loans.