RC_SM_100.1 Fundamentals of Secondary Marketing

Unlike the primary market, which concerns the processes required to bring a mortgage into existence, the secondary market is the portion of the mortgage market in which lenders and investors buy, sell, and trade existing mortgages. The secondary market plays a very important role in the national economy. For the home buyer, the secondary market makes funds and a wide array of financing alternatives available. For the lender, it can increase profits and help reduce the risks of mortgage lending by making available a liquid market for mortgages.

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 government sponsored 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.

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