Secondary Mortgage Market

Definition

  • This market refers to mortgage loans that are bundled together and sold as securities to investors. This process enables more potential home buyers to obtain mortgages because more money is freed up for lending.

Synonyms
mortgage equity exchange, mortgage aftermarket, mortgage equity market

Related Terms and Acronyms

  • Asset-Backed Securities (ABS) Acronym, Very Important,
    • Securities backed by a pool of assets.
    Financial security made up of a bundle of assets.
  • Canadian Depository for Securities Limited Company,
    • Agency responsible for the automatic processing and clearing of all securities transactions in Canada.
  • Issuer Definition,
    • A legal entity that develops, registers, and sells securities including stocks, bonds and derivatives.
  • Mortgage-Backed Securities Definition, Important,
    • Securities backed by mortgage debt.
  • Portfolio Lender Definition,
    • A company that underwrites mortgage loans and keeps them on the books instead of selling them on the secondary market.
  • Secondary Market Definition,
    • A market where financial instruments such as stocks, bonds, options and futures are bought and sold to investors.
  • Securities/Investment Dealer Definition,
    • One who acts as the agent for another party to buy and sell securities and other investments; also an underwriter.
  • Security Definition,
    • A tradable financial implement that represents ownership, the rights to ownership or debt.
    • Property designated as collateral.
    • A document stating ownership of a stock or bond.
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