A secondary mortgage market can be defined as a market that allows exchange of mortgage loans as well as servicing rights between mortgage originators, mortgage aggregators and investors. Secondary mortgage markets allows mortgages together with servicing rights to be liquid. Mortgages are often sold into the secondary market by originators. They are then packaged as mortgage-backed financial assets which are sold to institutional investors such as insurance companies, hedge funds and pension funds. This paper discusses the advantages of a secondary mortgage market. The chief importance of a secondary mortgage market is that it provides liquidity. A secondary market ...
Disability College Essays Samples For Students
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