Mortgage markets
Secondary mortgage market
Where existing loans are bought and sold between investors
Selling loans on replenishes an originator’s capital so it can lend again, which is the economic point of the whole arrangement. It also means the purchasers’ underwriting standards effectively set what borrowers are offered.
How the exam asks about it
"Second mortgages are originated here" is the standard wrong answer, and it is wrong because a second mortgage is a primary market transaction.
Related terms
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