A Model of Secondary Mortgage Market ; Suit the Requirements of Iran (As one of the substrates required for credit risk management in money market)
Subject Areas : Financial Knowledge of Securities Analysis
1 - ندارد
2 - مسئول مکاتبات
Keywords: credit risk, risk management, mortgage, secondary mortgage market,
Abstract :
Mortgage market refers to a market where mortgage funds are mobilized andallocated. The main product of the mortgage market is the mortgage loans. These loansare paid to the borrower after collateralization and imply a contract between the lenderand the borrower by witch the base asset is collateralized for guaranty of repaying theprincipal and interest of the mortgage loan.Regarding the functioning of the mortgage market and its agents, this market containsfor two submarkets; (a) Primary Market and (b) Secondary Market. In the primarymortgage market the real loans are provided to the applicants and in the secondarymortgage market, liquidity is entered to the primary market by purchasing packages ofmortgage loans.Considering the importance of issuing mortgage in credit risk management in moneymarket, this paper reviews the secondary mortgage market in selected countries andfocuses on America's most active institutions in the secondary mortgage market “FannieMae”, “ Freddie Mac”, and “Ginnie Mae” and finally by reviewing the proposedstructures for the secondary mortgage market participants in Iran, provides an appropriatemodel for establishment and public/private structure such institutions in the country.