NEED ANSWER ASAP / ANSWER NEVER USED BEFORE, COMPLETELY NEW ANSWER PLEASE Briefly explain mortgage securitization and how it...

60.1K

Verified Solution

Question

Finance

NEED ANSWERASAP / ANSWER NEVER USED BEFORE, COMPLETELY NEW ANSWERPLEASE
Briefly explainmortgage securitization and how it contributed to the economiccrisis.
ANSWERTHROUGHLY 1-2 pages
COPY AND PASTENOT ATTACHMENT PLEASE
NEEDS TO BE ANORIGINAL SOURCE ANSWER NEVER USED BEFORE
*NEEDS TOBE A ORIGINAL SOURCE

Answer & Explanation Solved by verified expert

4.2 Ratings (889 Votes)

Answer Mortgage securitization is done by combining individual mortgages like property or real estate buildings which are of similar characteristics to form a pool of mortgages and these are sold as debt securities that are compensated by interest on principal payments from the pool of mortgages The process of securitization helps in converting these illiquid assets like property and buildings or houses that are pledged as individual mortgages into securities and stocks that can be traded on stock exchanges in secondary markets There are different fed backed organizations like Fannie Mae Freddie Mac which are registered agencies with Federal Housing See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member