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Which of the following is TRUE regarding the securitization process of mortgage loans? Securitization of mortgage loans involves pooling mortgage loans with similar characteristics together
Which of the following is TRUE regarding the securitization process of mortgage loans? Securitization of mortgage loans involves pooling mortgage loans with similar characteristics together and selling the claims of the cash flows to investors. The securities created by the securitization of mortgage loans are known as collateralized loan obligations. Securitization involves pooling mortgage loans with different characteristics together to appeal to investors as a diversified investment. 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
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