Posts Tagged ‘secondary market’

Today’s issue is fraud. Fraud affects the secondary markets in two very important ways: The existence of fraud is a valid reason to require a seller to repurchase a mortgage. This is commonly known as a “buyback.” The higher the prevalence of fraud within mortgages originated, the higher the risk of default of these mortgages, and thus, the lower the value of the commodities created and sold in the secondary markets. In other words, the more fraud in our industry, the higher rates will go.Read more

Commercial Mortgage Securities Association (CMSA), in a white paper issued today on the White House’s overall regulatory reform proposals, emphasized that the government’s financial recovery and reform efforts should maintain a consistent view towards addressing the unique challenges facing the $3.5 trillion commercial mortgage market.Read more