When Bonds Are Issued by Ginnie Mae, Fannie Mae, and Freddie

When bonds are issued by Ginnie Mae, Fannie Mae, and Freddie Mac, for what purpose are the proceeds typically used?

A) Mortgages are purchased and resold individually to investors.
B) Mortgages are purchased, pooled together, and then sold in small groups of three to five mortgages to wealthy investors.
C) Mortgages are purchased, pooled together in large groupings, and then the pooled groupings are sold in pieces.
D) Mortgages are purchased and resold, with the risk being evenly divided between the government agency and the purchaser.