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

Expert Solution

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 2 years ago

what is the role of European financial institutions in improving the financial market?

The market for used cars is: a) active and well-functioning because of market institutions that developed...

The market for used cars is: a) active and well-functioning because of market institutions that developed to mitigate adverse selection. b) full of moral hazards that prevent the efficient functioning of the market. c) contains many instances of adverse selection, which prevent it from functioning efficiently. d) exhibit the principal–agent problem that prevent buyers from knowing the quality of the car they want to purchase.

What are financial institutions? What are some examples of financial institutions? How are they regulated and...

What are financial institutions? What are some examples of financial institutions? How are they regulated and what are some of their internationalization strategies?

● Discuss the types of financial institutions involved in the financial market and the markets they...

● Discuss the types of financial institutions involved in the financial market and the markets they serve. Be sure to distinguish between the primary and secondary markets and the money and capital markets. ● Discuss what it means when it is said that markets are “efficient” and include an explanation of whether this seems true today. ● Discuss the role of regulators in the financial market. Your discussion should include information about the importance of accounting as a key to...

discuss the impact of the financial crisis 2008 towards the financial institutions and the financial market...

discuss the impact of the financial crisis 2008 towards the financial institutions and the financial market ( essay)

Discuss the types of financial institutions involved in the financial market and the markets they serve....

Discuss the types of financial institutions involved in the financial market and the markets they serve. Be sure to distinguish between the primary and secondary markets and the money and capital markets. ● Discuss what it means when it is said that markets are “efficient” and include an explanation of whether this seems true today. ● Discuss the role of regulators in the financial market. Your discussion should include information about the importance of accounting as a key to the...

How does financial institutions participate in money market?

Why are financial institutions regulated? How are they regulated? What are liabilities of depository institutions? What...

Why are financial institutions regulated? How are they regulated? What are liabilities of depository institutions? What are the assets of depository institutions? How can depository manage the risk associated with each? What are depository institution regulated even more than other financial institutions?

Write a brief “Overview of Global Financial Market” Areas to be covered :- Different Financial Institutions...

Write a brief “Overview of Global Financial Market” Areas to be covered :- Different Financial Institutions that operate in Global Financial Markets and their specific roles.

In recent times, with mortgage rates at low levels, financial institutions have had to provide more...

In recent times, with mortgage rates at low levels, financial institutions have had to provide more customer convenience. One of the innovations offered by Coastal National Bank and Trust is online entry of mortgage applications. Listed below are the times, in minutes, for eight customers to complete the application process for a 15-year fixed-rate mortgage and the times for nine customers to complete an application for a 30-year fixed-rate mortgage. 15 years, fixed rate 41 36 42 39 36 48...

Question