Which government-sponsored enterprise is known for purchasing conforming mortgage loans and reselling them in the secondary market?

The Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, is the government-sponsored enterprise that is specifically known for purchasing conforming mortgage loans and then reselling them in the secondary market. This function is crucial for providing liquidity and stability in the housing finance system, as it enables lenders to free up their capital to issue more loans.

Freddie Mac plays a vital role in ensuring that there is a continuous flow of funds to the mortgage market, which supports the availability of housing finance for borrowers. By purchasing conforming loans, which meet specific criteria set by the enterprise, Freddie Mac can manage and mitigate the risks associated with mortgage lending while providing investors with opportunities to invest in mortgage-backed securities.

In contrast, the Federal National Mortgage Association (Fannie Mae) performs similar functions but is a separate entity with its own distinct operations. The Federal Trade Commission focuses on consumer protection and competition in the marketplace, while the Federal Housing Administration (FHA) focuses on insuring loans rather than purchasing them. Therefore, the role of Freddie Mac in the secondary market as a buyer and seller of conforming mortgage loans makes it the correct answer.