Question: Which of the following is TRUE regarding the securitization process of mortgage loans? O The securities created by the securitization of mortgage loans are
Which of the following is TRUE regarding the securitization process of mortgage loans? O The securities created by the securitization of mortgage loans are known as collateralized loan obligations. O Securitization involves pooling mortgage loans with different characteristics together to appeal to investors as a diversified investment. O Securitization of mortgage loans involves pooling together business loans used for funding of leveraged buyouts and other purposes, and selling the claims of the cash flows to investors. O Securitization of mortgage loans involves pooling mortgage loans with similar characteristics together and selling the claims of the cash flows to investors.
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SOLUTION ANSWER Option 3 Securitization of mortgage loans involves pooling mortgage loans with simil... View full answer
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