What agency plays an important role in the secondary mortgage market by selling mortgage-backed securities?

The agency that plays a crucial role in the secondary mortgage market by selling mortgage-backed securities is Ginnie Mae. Ginnie Mae, or the Government National Mortgage Association, is a government agency that guarantees mortgage-backed securities issued by approved lenders. These securities are created from pooled mortgage loans, which are sold to investors as a way to provide liquidity and stability to the mortgage market.

By issuing mortgage-backed securities, Ginnie Mae helps to ensure that money remains available for new home loans, thus supporting both borrowers and lenders. The guaranteed payments to investors enhance the attractiveness of these securities, making it easier for lenders to sell their loans in the secondary market. This activity stimulates the flow of capital in housing finance, ultimately benefiting consumers by promoting home ownership and affordable housing.

In contrast, the other options do not involve the same role or function in the secondary mortgage market. General agency refers to a type of relationship where an agent acts on behalf of a principal in business dealings. General lien pertains to a claim against all real and personal property owned by a debtor, while a general partnership involves a business structure where all partners share liability and management responsibilities. None of these options relate directly to the mechanism of selling mortgage-backed securities or facilitating operations in the secondary mortgage market.