What If No Secondary Market?

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Selling fixed-rate mortgages off to the secondary market is a great idea-but what if you don't have a secondary market?

That was the question from a CUNA Future Forum attendee from Barbados, where no such secondary market exists.

The mortgage portfolio panelists suggested the Barbadian look into several different options. The first was to lobby the government to create a secondary market by establishing a government sponsored enterprise like Fannie Mae and Freddie Mac in the U.S., which were designed specifically for that purpose.

But that's a long-term process. In the shorter term, the panelists advised investigating the off-shore market as well as loan participation programs.

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