Question: Answer the below questions. a. Why is it necessary for a nonagency mortgage-backed security to have credit enhancement? b. Who determines the amount of credit

Answer the below questions.
a. Why is it necessary for a nonagency mortgage-backed security to have credit enhancement?
b. Who determines the amount of credit enhancement needed?

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a Credit enhancement is a key part of the securitization transaction in structured finance and is important for credit rating agencies when rating a securitization Credit enhancement involves the proc... View full answer

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a. Why is it necessary for a nonagency mortgage-backed security to have credit enhancement? b. Who determines the amount of credit enhancement needed?

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