Primary Mortgage Market

The primary market is where borrowers and mortgage originators come together to negotiate terms and effectuate mortgage transaction. In other words the primary market is where the loan is actually created. Mortgage brokers, mortgage bankers, credit unions and banks are all part of the primary mortgage market. After being originated in the primary mortgage market, most mortgages are sold into the secondary mortgage market thus enabling the originating lender to recycle/reuse the funds to make a new loan to a new borrower.