Title: Differentiate between primary and secondary markets.
Course: Real Estate (12154) > Section: Exploring Real Estate Financing

Differentiation should include definitions, purposes, examples, and financial institutions involved with

- primary market—made up of the lenders who directly originate loans and make money available to borrowers
- secondary market—where loans are bought and sold after they have been funded.

DPOR correlations: 18VAC135-20-400. 2 (Real estate market and analysis); 18VAC135-20-400. 6 (Mortgages and deeds of trust); 18VAC135-20-400. 7 (Types of mortgages); 18VAC135-20-400. 14 (Real estate financing)

Process/Skill Questions:

- Who are some of the major lenders in the primary market?
- How is income on a loan realized?
- How can a lender service a loan without having originated a loan?