Market for Primary Mortgage Securities

The market for primary mortgage securities consists of two tiers: Primary Mortgage Market and Secondary Mortgage Market. Each tier has it's own type of market participants: Originators and Investor-Lenders.

Originators - Primary Mortgage Market

An originator is also known as a "mortgage originator" and is in the business of connecting mortgage applicants (borrowers) with mortgage lenders (investor-lenders). The originators may operate in different forms, including:

Mortgage Agent

Mortgage Broker

Mortgage Banker

Investor-Lenders - Secondary Mortgage Market

An investor-lender is in the business of buying or selling mortgages that have been created in the primary mortgage network by an originating party.