Which entity is NOT involved in buying mortgages?

The correct choice indicates that the Department of Housing and Urban Development (HUD) is not involved in buying mortgages. HUD is primarily a government agency focused on national policy and programs that address the housing needs of Americans. Its main functions include overseeing federal housing programs, enforcing fair housing laws, and addressing community development, rather than actively participating in the buying or selling of mortgages themselves.

In contrast, Fannie Mae (the Federal National Mortgage Association), Freddie Mac (the Federal Home Loan Mortgage Corporation), and GNMA (the Government National Mortgage Association, also known as Ginnie Mae) are all government-sponsored entities that are directly involved in the secondary mortgage market. They purchase mortgages from lenders, which provides liquidity and stability to the housing finance system. This allows lenders to issue more loans to homebuyers, thereby facilitating home ownership.