Secondary Mortgage Market
The market where existing mortgage loans are bought and sold, giving lenders fresh capital to make new loans.
The secondary mortgage market is where existing loans are bought and sold among investors and agencies after they are originated. Buyers in this market include Fannie Mae, Freddie Mac, and Ginnie Mae.
By purchasing loans from lenders, the secondary market returns capital to those lenders so they can originate more loans. The primary market, by contrast, is where lenders make loans directly to borrowers.
On the exam
Exam trap
Tested in
Financing & Settlement (6% of the exam)
From definition to recall
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This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.