In real estate finance, the secondary mortgage market is the marketplace in which existing first mortgages or deeds of trust are bought and sold. This market allows lenders to convert mortgage loans into cash, enabling them to replenish funds for new lending.
Mortgages in the secondary market are often sold at a discount to their face value, depending on interest rates and market conditions. By providing liquidity to lenders, the secondary mortgage market plays a critical role in maintaining the availability and stability of mortgage financing.
