Question: 8 ,1 Use the following table to determine what type of financial institution engages in each of the given mortgage market activities. Activity in Mortgage

8 ,1

Use the following table to determine what type of financial institution engages in each of the given mortgage market activities.

Activity in Mortgage Market

Commercial Banks and Savings Institutions

Credit Unions and Finance Companies

Mortgage Companies

Mutual Funds

Securities Firms

Insurance Companies

Originate mortgages by working with borrowers to create loans where the real estate or property is used as collateral for the loan.

Use securitization to pool a variety of mortgages and sell mortgage-backed securities.

Maintain mortgage-based securities in their investment portfolios.

Offer instruments to help institutions that invest in mortgages hedge (protect themselves) against large fluctuations in interest rates.

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