RC_SM_100.1 Fundamentals of Secondary Marketing

1-5 Beginner Capital & Secondary Markets Education Residential Self-Study Web-Based Courses
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Member $50.00
Non-Member $100.00

The primary mortgage market is where mortgages are originated. Borrowers who wish to get a loan come to mortgage lenders. 

But banks needed liquidity and investors wanted higher-yielding assets. 30-year mortgages tied-up bank’s capital, limiting the amount of loans (and customers) that could be served so banks wanted the ability to sell mortgages to release capital in order to make new loans, but they also wanted to keep the servicing relationship with the customers.

Hence, the secondary mortgage market was born. The secondary market is where lenders, GSEs, and investors buy, sell, and trade existing mortgages.

The secondary market plays a very important role in the national economy. For the homebuyer, the secondary market makes funds available and allows for a wide array of financing alternatives to be offered. For the lender, it can increase profits and help reduce the risks of mortgage lending while still allowing them to maintain a relationship with their borrowers.


Fundamentals of Secondary Marketing provides a broad overview of secondary marketing in mortgage banking. The course begins with an exploration through the history of secondary marketing in the United States. The conceptual foundation is then laid for understanding the mortgage industry, along with the key roles the secondary mortgage market plays in our economy. Then, the course introduces the major participants, including but not limited to private mortgage insurance companies, investors, the government, and quasi-government agencies. Descriptions and analysis of the wide variety of industry participants are conveyed. Next, an overview of warehousing, shipping, delivery, and the relation to the secondary marketing function are provided. Finally, the course shifts focus to the many responsibilities of a secondary marketing department. An overview of industry professionals, loan sales, risk/pipeline management, pricing, and hedging completes the course.

This is a single-family/residential course.

Topics:

  • Evolution of Secondary Marketing
  • Major Participants in the Secondary Market
  • Secondary Market Professionals and Functions
  • The Secondary Market

     

    Seat time approximately 2 hours.

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