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The Secondary Mortgage Market and Mortgage Securitization

The Secondary Mortgage Market and Mortgage Securitization

Learn about the secondary market in mortgages, including the role of the federal government and the securitization of mortgages..

Transcript

The secondary market is an important factor in the way that mortgages function. This lesson will provide a brief overview of the secondary market, including the securitization of mortgages and the industry’s use of the Mortgage Electronic Registration System, or MERS.

The secondary market involves the buying and selling of mortgages as investments. From the original mortgagee’s perspective, there are good reasons to sell the mortgage. As we’ve seen previously, the mortgagee can make money...