Material on this page provides critical information to MBA members involved in secondary marketing activities. The secondary market is the market where mortgage bankers and investors come together to sell and buy existing mortgages. The federal government has encouraged the formation of this market by creating the Government-Sponsored Enterprises: Fannie Mae, Freddie Mac, Ginnie Mae and the Federal Home Loan Banks. MBA members also issue mortgage securities that form a secondary market execution for mortgage that often are not eligible for purchase or securitization by government agencies. The secondary market provides liquidity to the primary mortgage market. As long as the mortgage banker or portfolio lender closes standard loans in accordance with secondary market requirements, they can sell the mortgage at almost any time the need arises.
The secondary marketing manager in a mortgage bank must be concerned with risk management, pipeline management and mortgage loan sales.
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