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 ?
However, the GSE's involvement in the secondary mortgage market is still significant.
But strong congressional divisions persisted and make it highly unlikely that Congress will send secondary mortgage market reform to the White House in 2014.
SMF was set up by Indonesia's government in 2005 to facilitate long-term financing for the primary and secondary mortgage markets through lending and securitisation.
The GSEs and secondary mortgage market investors each have different requirements for the loans they purchase.
Such a strict accrual rule, coupled with the unique characteristics of the secondary mortgage market, creates a return sinking trap for the unwary investor.
There were legal, institutional and economic factors inhibiting progress towards an Australian secondary mortgage market.
Bruce Paradis, Chairman of the Board of Directors for The Homeownership Preservation Foundation, added: "Sanjeev brings to the Board a unique perspective based on decades of market experience and expertise on the correlation between mortgage availability and pricing at the consumer level and broader macroeconomic concerns, such as the economy and the secondary mortgage market.
We all have real concerns about a world in which the secondary mortgage market is occupied by a handful of very large banks.
It will also promote the securitization of regional mortgage portfolios by having homogeneous instruments, which will allow the development of a secondary mortgage market and with this more capital will be raised for investment.
The paper, titled MBA's Recommendations for the Future Government Role in the Core Secondary Mortgage Market, was released in early September.
Instead, it operate in the secondary mortgage market, buying loans and selling mortgage-backed securities investors, which in turn, increases the availability of mortgage credit.
Institutions in the secondary mortgage market play a prominent role in the US.

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