Which institutions are part of the primary mortgage market?

The primary mortgage market consists of institutions and entities that originate loans directly to borrowers for the purchase of real estate. These institutions provide the initial financing that enables individuals to buy homes or investment properties.

Commercial banks are significant players in this market as they offer a variety of mortgage products to consumers. Life insurance companies also engage in mortgage lending by providing loans as part of their investment portfolios, typically for larger, commercial properties or high-value residential properties.

On the other hand, local credit unions and online lending platforms do participate in mortgage lending but are not traditionally classified among the primary mortgage market's core institutions. Real estate agents play a crucial role in facilitating transactions but do not directly originate mortgage loans, thereby placing them outside of this particular market classification. The primary mortgage market is focused on those entities that provide funding directly to the borrowers, making commercial banks and life insurance companies integral to this process.