Creation and expansion of secondary mortgage market is perhaps the hottest topic in housing finance today. Mortgage-backed securities (MBS) have been issued in at least 16 countries. An additional 20 or more are discussing or contemplating the creation of secondary market. Why is secondary mortgage market development such a hot topic? There are a number of reasons secondary market development holds the promise of tapping long terms funds in the capital market in order to expand the flow of funds to housing and improve risk management for lenders (particularly depositories),creating a flow of high quality fixed income securities to meet the demands of emerging pension and insurance investor (particularly in countries undergoing pension reform)