Which institution's reduced importance in the primary mortgage market has been complemented by a rise in another entity's role?

The primary mortgage market involves institutions that provide loans directly to borrowers. Over the years, thrifts, which include savings and loan associations, traditionally played a significant role in this market by offering home loans and acting as a primary funding source for mortgages. However, their importance has diminished due to various regulatory changes, economic shifts, and competition from other lending entities.

As thrifts have become less prominent, mortgage bankers have risen in their place. Mortgage bankers originate loans and can be involved in the entire mortgage process, often selling these loans in the secondary market after origination. They can provide a broad range of mortgage products and adapt more quickly to changing market conditions compared to thrifts.

This transition highlights the evolving nature of the mortgage industry, where mortgage bankers have stepped in to fill the gap left by reduced thrift activity, thereby becoming crucial players in facilitating home financing.