What term describes the set of financial agreements that cover mortgage-backed securities?

The term that describes the set of financial agreements that cover mortgage-backed securities is the secondary mortgage market. In this market, existing mortgages are bought and sold, and mortgage-backed securities are created by pooling these mortgages together and selling shares in that pool to investors. This setup allows lenders to free up capital by selling the mortgages they've originated, making more funds available for new loans. It also provides investors with a way to invest in the real estate market indirectly through these securities.

The primary mortgage market, by contrast, refers to the market where mortgages are originated, meaning it's where borrowers first obtain their loans directly from lenders. Equity financing relates to raising capital through the sale of shares and is not specifically tied to mortgages. The fixed mortgage market isn't a recognized term in the context of mortgage-backed securities, making it less applicable to this question. Therefore, understanding the role of the secondary mortgage market is crucial as it directly relates to how mortgage-backed securities function.