Question
1. Institutional use of mortgage markets Use the following table to determine what type of financial institution engages in each of the given mortgage market
1. Institutional use of mortgage markets
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 | |
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| Use securitization to pool a variety of mortgages and sell mortgage-backed securities. |
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| Originate mortgages by working with borrowers to create loans where the real estate or property is used as collateral for the loan. |
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| Maintain mortgage-based securities in their investment portfolios. |
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| Sell shares and use the proceeds to create portfolios consisting of mortgage-backed securities. |
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Cost Accounting
Authors: Mark Lee Inman
1st Edition
0434908304, 9780434908301
