what is the mortgage market and what financial institutions are active in the mortgage market?

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Answer :-

Mortgage markets are the subcategory of Capital Markets because mortgages involve long-term funds. Mortgage is a Long-term loan (debt) secured by Real Estate. Mortgage Loans are made of varying amounts & maturities, and can have a variety of additional features, causing more of a problem for developing a secondary market. Usual borrowers in mortgage markets are individuals (households).

Mortgage market includes primary and secondary mortgage ;

Primary markets are usually local in nature, with local lenders making local loans.

Secondary markets buy real estate loans as investments from all over the country.

Secondary Mortgage Market Agencies are ;

Federal National Mortgage Association (Fannie Mae)
Government National Mortgage Association (Ginnie Mae)
Federal Home Loan Mortgage Corporation (Freddie Mac)

Banks, mortgage brokers, mortgage bankers, and credit unions are all primary lenders and are part of the primary mortgage market.

Rahul Sunny answered 1 year ago

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