secondary mortgage market

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Secondary mortgage market

Buying and selling existing mortgage loans, which are often pooled and traded as mortgage-backed securities.

Secondary Mortgage Market

The market for buying and selling mortgages. After a bank makes a mortgage loan to a client, it may choose to sell the loan to another party, which reduces its risk of non-payment; this transaction is based on the same concept as accounts receivable financing. Often, these mortgages are re-packaged together as mortgage-backed securities.

secondary mortgage market

The market for the purchase and sale of existing mortgage loans as long-term investments. Fannie Mae purchases many mortgages, as do other private investment groups. See collateralized mortgage backed securities, REMIC, Fannie Mae, and collateralized mortgage obligation.

References in periodicals archive ?
IREM adopted a statement of policy in April of 2011 on the secondary mortgage market, in which we recognize the role of the secondary mortgage market in providing stability for the multifamily housing market.
Ryan Donavan, CUNA's senior vice president of legislative affairs, agreed with Thaler that it is very unlikely that Congress overall will pass any secondary mortgage market reform this year.
The Council on Ensuring Mortgage Liquidity convened its Summit on the Future of the Secondary Mortgage Market and the Government-Sponsored Entities in mid-November, gathering more than 130 MBA members and housing industry leaders to hear from leading academics and secondary market participants about the causes of the credit crisis and the key factors needed to re-establish a robust new secondary market.
For a discussion of the history of the FHA's programs and its credit policies, see Susan Wharton Gates, "FHA at a Crossroads," Secondary Mortgage Markets, vol.
The current secondary mortgage market is dominated by two government-sponsored enterprises, Fannie Mae and Freddie Mac, which failed in September 2008 and have existed ever since as directly government-controlled organizations.
This information will provide much greater detail than the HMDA data for the loans purchased; however, the HMDA data provide information on both the primary and the secondary mortgage markets in metropolitan areas and thus will allow comparisons that can be used to evaluate the difficulties and opportunities that the GSEs encounter in attaining these goals.
The sixth module, "Multiclass Mortgage-Backed Securities," introduces CMOs, REMICs and SMBSs, while the seventh lesson, "Doing Business in the Secondary Mortgage Market," deals primarily with the functions and services of investment bankers.
The goals of the agency's plan include building new infrastructure for the secondary mortgage market of the future along with taking steps to move more of the mortgage business away from the GSEs.
is a leading Internet-based secondary mortgage market exchange through its proprietary Web-based platform, pedestal.
Secondary Mortgage Market Basics provides an introduction to this critical facet of mortgage lending and offers a clear explanation of how the development of the secondary mortgage market has shaped the mortgage industry.
Credit unions have a large stake in the debate over how to reform the secondary mortgage market but may need exceptional patience and endurance to see it through to the end.
com, management's vision and expertise, and the untapped growth potential of the secondary mortgage market," said David Tabors, a Principal of Battery Ventures and a member of Pedestal's Board of Directors.

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