Question
Blasa Savings is a savings institution that provided Jonshon Company with a mortgage for its office building. Blasa recently offered to refinance the mortgage if
Blasa Savings is a savings institution that provided Jonshon Company with a mortgage for its office building. Blasa recently offered to refinance the mortgage if Johnson company will change to a fixed-rate loan from an adjustable-rate loan.
1. If Blasa maintains the mortgage on the office building purchased by Johnson Company, who is the ultimate source of the money that was provided for the office building? if Blasa sells the mortgage in the secondary market to a pension fund, who is the source that is essentially financing the office building? Why would a pension fund be willing to purchase the mortgage in the secondary market?
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