finance
primary mortgage market
The primary mortgage market is where borrowers obtain loans directly from lenders such as banks, credit unions, savings associations, and mortgage companies. These lenders originate the loans, collecting origination fees and interest. Many loans are later sold in the secondary mortgage market, which replenishes lenders' funds so they can make more loans.
- Exam tip
- Primary market lenders make loans to consumers; the secondary market buys existing loans. Fannie Mae, Freddie Mac, and Ginnie Mae operate in the secondary market, not the primary market.
- Example
- A couple obtains a mortgage from their local credit union, a primary market transaction; the credit union later sells the loan to Fannie Mae.
Related terms & state variants
Sources
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Last verified: 2026-10-23