secondary mortgage market

Secondary mortgage market

Buying and selling existing mortgage loans, which are often pooled and traded as mortgage-backed securities.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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