This is a single-family/residential course.
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 homebuyer, 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 moves from a high-level overview to the role secondary marketing plays within a mortgage banking operation.
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 will be conveyed. Next, an overview of warehousing, shipping, delivery, and the relation to the secondary marketing function will be 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 will complete the course.
Evolution of Secondary Marketing
Major Participants in the Secondary Market
Meet the Secondary Market Professionals
The Secondary Market
Seat time approximately one (1) hour.