Ask Question
26 February, 03:37

In the securitization process, mortgages are pooled together and cash flows are packaged into securities to be sold in the secondary market. Agencies and private companies that pool mortgages and sell mortgage-backed securities (MBS) are often referred to as:

A. thrifts

B. credit unions

C. conduits

D. automated underwriters

+5
Answers (1)
  1. 26 February, 03:47
    0
    Answer: Option (C)

    Explanation:

    Mortgage-backed security is referred to as an investment which is quite similar to the bond that is formed from the accumulation of home loan which are bought from several commercial banks. The investors indulged in the Mortgage Based Security tend to earn a periodic payment which are similar to the bond coupon. These securities are often referred to as the conduits.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “In the securitization process, mortgages are pooled together and cash flows are packaged into securities to be sold in the secondary ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers