Primary Mortgage Market

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DEFINITION of 'Primary Mortgage Market'

The market where borrowers and mortgage originators come together to negotiate terms and effectuate mortgage transaction. Mortgage brokers, mortgage bankers, credit unions and banks are all part of the primary mortgage market.

INVESTOPEDIA EXPLAINS 'Primary Mortgage Market'

After being originated in the primary mortgage market, most mortgages are sold into the secondary mortgage market. Unknown to many borrowers is that their mortgages usually end up as part of a package of mortgages that comprise a mortgage-backed security (MBS), asset-backed security (ABS) or collateralized debt obligation (CDO).

RELATED TERMS
  1. Collateralized Mortgage Obligation ...

    A type of mortgage-backed security in which principal repayments ...
  2. Collateralized Debt Obligation ...

    An investment-grade security backed by a pool of bonds, loans ...
  3. Secondary Mortgage Market

    The market where mortgage loans and servicing rights are bought ...
  4. Mortgage Originator

    An institution or individual that works with a borrower to complete ...
  5. Warehouse Lending

    A line of credit extended by a financial institution to a loan ...
  6. Mortgage-Backed Security (MBS)

    A type of asset-backed security that is secured by a mortgage ...
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