| pools them and sells them as mortgage-backed securities to investors on the open market. This secondary mortgage market helps to replenish the supply of lendable money for mortgages and ensures that money continues to be available for new home purchases. “Home equity is also extracted california home loan mortgage second home sales when homesellers roll only part of the equity from the sale into new downpayments. A recent study co-authored by Fed Chairman Alan Greenspan put this form of equity extraction at roughly $350 billion in 2004 and $300 billion in california home loan mortgage second first quarter of 2005 at an annualized rate.” Freddie Mac expects 30-year |
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