The secondary mortgage market is where existing home loans and servicing rights are bought and sold between lenders and investors. Most U.S. home loans eventually flow into this market after a bank originates and funds them.
B. Existing loans are bought and sold.
Get ready for question of the day. The secondary mortgage market refers to the market where: A. FHA loans are originated. B. Existing loans are bought and sold. C. Secondary financing may be obtained. D. Conventional loans are originated. The answer is letter B. The secondary mortgage market is where home loans and servicing rights are bought and sold between lenders and investors. Most home loans in the U.S. are eventually sold to the secondary mortgage market. When a consumer obtains a home loan, that loan is underwritten, funded, and serviced by a bank or lending institution. Learned something new? Give us a like, tag a friend, and let's keep the conversation going. Message us here or visit our website.
