Which of the following is NOT a secondary market participant?

In the context of financial markets, secondary market participants are entities that facilitate the buying and selling of securities after they have been issued in the primary market. These participants typically engage in the trading or securitization of financial assets.

Fannie Mae, Freddie Mac, and Ginnie Mae are all government-sponsored enterprises or agencies that operate primarily in the secondary mortgage market. They purchase mortgages from lenders, pool them together, and issue mortgage-backed securities (MBS) that are sold to investors. This process helps to provide liquidity and stability in the housing finance system.

On the other hand, the Federal Housing Administration (FHA) does not function as a secondary market participant. The FHA is primarily involved in providing mortgage insurance on loans made by approved lenders to borrowers with low to moderate incomes. Its role is focused on facilitating homeownership by reducing the risk for lenders, rather than engaging directly in secondary market transactions or buying and selling existing securities. This distinction in roles underscores why the FHA is not classified as a secondary market participant.