Secondary Mortgage Market

Definition: The secondary mortgage market is where existing mortgage loans and mortgage-backed securities are bought and sold.

Example

After originating a loan, a lender sells it to an investor or a government-sponsored enterprise under applicable rules.

Keep the distinction clear

A sale can change the loan owner without changing the original loan's terms. Servicing may remain with the same company or transfer separately.

Related terms

Primary Mortgage Market · Fannie Mae · Loan Servicing

Keep studying

Primary and Secondary Mortgage Markets: Fannie Mae, Freddie Mac, and Ginnie Mae

References: Fannie Mae: role in housing finance · Freddie Mac: role in housing finance

Pronunciation (US): SEK-uhn-dair-ee MOR-gij MAR-kit (capitals show stress)

Pronunciation reference: Merriam-Webster