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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 and other lenders. These loans are often purchased in the secondary market by wholesale and correspondent lenders, as well as conduits and other aggregators, who specify the kinds of loans they are willing to try.
Typically, the loans are then pooled and structured in ways that make them attractive to a range of investors. Buyers of Mortgage-Backed Securities (MBS) include insurance companies, pension and Taft Hartley plans, banks, mutual funds, hedge funds, government entities and others. By purchasing MBS, investors inject liquidity into the secondary market, so that Credit Unions and lenders can make more loans.
What Does the Secondary Market Offer for Credit Unions?
CMG MI can help locate the secondary market partner to meet your Credit Union's needs. in secondary market sales. By leveraging secondary market opportunities, Credit Unions may potentially:
- Improve the management of interest rate and credit risks
- Increase return on assets through fee and/or service income
- Expand product menu to serve more of Members’ homeownership needs
- Create fee and servicing income, as well as cross-selling opportunities
CMG MI is ready to be your liaison with the secondary market. We can discuss how to optimize your secondary market opportunities and explain your “best execution” strategy, so you can derive 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. |