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.

BREAKING DOWN '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 ...

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  3. Mortgage Banker

    A company, individual or institution that originates mortgages. ...
  4. Mortgage Servicing Rights - MSR

    A contractual agreement where the right, or rights, to service ...
  5. Mortgage-Backed Security (MBS)

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

    An intermediary who brings mortgage borrowers and mortgage lenders ...
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