What does Secondary Mortgage Market mean?

The secondary mortgage market is the market where mortgages are bought and sold after they have been originated by a lender. This includes entities such as Fannie Mae and Freddie Mac, which purchase mortgages from lenders and then package them into securities that are sold to investors. The secondary mortgage market plays an important role in making mortgages more widely available, as it allows lenders to free up funds to make new loans.

Related Terms

Interest Accrual Rate Effective Gross Income Correct Zoning (In a Lease) Accessibility Title Company Disability Insurance Mortgage Lender Employer-Assisted Housing Low-Ball Offer Live-In Partnership In-File Credit Report Escrow Analysis Non-Liquid Asset Debt Gross Lease Contingent Fee Absolute Net Point