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| Home | Ask Your Question | Mortgage Glossary | ||
Secondary Mortgage MarketThe place where primary mortgage lenders sell the mortgages to investors like Fannie Mae or Freddie Mac in order to obtain more funds for originating more new loans. Secondary mortgage market provides liquidity for the lenders. Government-sponsored entities Fannie Mae and Freddie Mac form a market of packaged conforming home loans. Lenders who originate loans in the primary mortgage market may either hold the loans in their portfolios or sell them in the secondary mortgage market. By selling their loans in the secondary market, lenders are able to obtain additional funds with which to make more loans to home buyers. The secondary mortgage market helps accomplish the following important housing objectives: - it addresses imbalances of mortgage credit among regions of the United States by making funds available to capital-deficient areas of the country to finance new mortgage originations; |
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Related Mortgage Definitions: Mortgage Baked Securities, MBS Mortgage Baked Securities, MBS Mortgage-backed securities (MBS) are bond or other financial obligation secured by a pool of mortgage loans. Mortgage loans are purchased from banks, mortgage companies, and other originators and then assembled into pools by purchasing entity. ... more... Mortgage Note Mortgage Note A written negotiable promise (agreement) to pay a sum of money plus interest at a set interest rate. The note is secured by a mortgage. In turn, mortgage is secured by property. Mortgage note states the amount of debt and the rate of interest, and makes the ... more... Secondary Mortgage Market Secondary Mortgage Market The place where primary mortgage lenders sell the mortgages to investors like Fannie Mae or Freddie Mac in order to obtain more funds for originating more new loans. Secondary mortgage market provides liquidity for the lenders. Government-sponsored ... more... Second Mortgage, Home Equity Loan Second Mortgage, Home Equity Loan A secured loan (mortgage) that is subordinate to another loan against the same property. More specifically, the second loan in sequence. Generally, second mortgage hass a higher interest rate and with shorter terms than a ... more... |
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