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 ?
If a condominium does not meet the secondary mortgage market guidelines, an owner/purchaser will have to look to a local lender that does not bundle and sell units into the secondary mortgage market, and usually at a higher interest rate.
LAS VEGAS -- The secondary mortgage market's common securitization platform will begin some operations next year, former FHFA Acting Director Edward DeMarco told his ACUMA Conference keynote audience Wednesday.
Secondary Mortgage Market Officer Tina Lynch was appointed Assistant Vice President.
Sessions focused on topics like protecting real estate-related tax policies, reforming the secondary mortgage market and the accessibility of mortgage credit and loan programs.
While discussions on government-sponsored entities (GSEs), specifically, Fannie Mae and Freddie Mac, usually focus on their involvement in the single-family secondary mortgage market, their role in the multifamily secondary market may seem overlooked, since multifamily loans have performed relatively well, even throughout the economic downturn.
The secondary mortgage market limits refinancing to 85% of the value of the properties in conventional mortgage loans and to 95% on loans insured by the Federal Housing Administration.
(4) The cumulative effect of unconventional gas drilling on residences in the thirty to thirty-five states where operations occur, or are planned, poses a potential threat to the nation's $6.7 trillion secondary mortgage market, since the secondary mortgage market is supported by an unknown number of mortgages affected by residential fracking.
The investment manager noted it was willing to assist with a restructuring that speeds up the return of substantial investment to the secondary mortgage market.
Roosevelt administration in order to expand the secondary mortgage market by securitizing mortgages and blamed by conservatives as the key villain in the collapse of the housing market in 2008.
This eligibility for purchase in the secondary mortgage market improves the availability of loan funds and permits more favorable interest rates.
The secondary mortgage market approach enables frontline lenders to spread risk and access new sources of funds.
This government invention became known as the secondary mortgage market. Fannie financed its own operations by selling bonds.

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