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CMG Mortgage Insurance Company Secondary Market
What is the Secondary Market?
The secondary mortgage market in the United States is a major source of housing credit. Mortgage loans are originated in the primary market, where homebuyers obtain loans from their individual credit unions or from other lenders. The secondary market buys existing mortgages that meet secondary market criteria. This allows funds to be replenished so Credit Unions can make more loans.
Secondary market investors typically replenish their own funds by borrowing in the capital markets. Secondary market investors raise funds the same way that other large companies and the U.S. Treasury do - by selling various debt instruments to capital market investors. This enables secondary market investors to buy more mortgages from Credit Unions, so that in turn, they can make new loans to home buyers.
What Does the Secondary Market Offer for Credit Unions?
CMG MI can help Credit Unions locate the right investor to meet your needs in secondary market sales. By working with CMG MI to leverage the opportunities of the secondary market, Credit Unions may potentially:
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Manage interest rate and credit risk |
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Increase return on assets through fee/or service income |
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Expand product menu to serve more of Members’ homeownership needs |
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Create fee income, a servicing revenue stream and cross-selling opportunities |
CMG MI is ready to be your liaison with the secondary market. We can meet with you to discuss how to optimize your secondary market opportunities and explain your “best execution” strategy, so you can leverage the most value from a secondary market transaction.
Related topics:
Find out how your Credit Union can participate in the secondary market. For more information about investors, the secondary market and how we can provide assistance, please contact your CMG MI Account Executive.
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