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What is the Secondary Market?


Most loans get sold on to the secondary market and the government has actually set up agencies specifically for buying mortgages. The three names you will most likely hear are:

  • Fannie Mae (Federal National Mortgage Association)
  • Freddie Mac (Federal Home Loan Mortgage Association)
  • Ginnie Mae (Government National Mortgage Association)

This gives lenders an almost inexhaustible source of money.
Do not be surprised if your loan gets sold over and over again on the secondary market. However, if you receive a letter from the lender stating your loan has been sold, make sure you call the lender. By law, he has to provide you with an 800 number of the agency taking over the loan.



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