Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following statements regarding mortgage markets is most correct? All of these statements are correct Securitization mortgage loans involves the pooling and repackaging

Which of the following statements regarding mortgage markets is most correct?

All of these statements are correct

Securitization mortgage loans involves the pooling and repackaging of these loans into securities.

Ginnie Mae is a corporation , wholly owned by the Federal Government, that supplies funds to low and moderate income homeowners by facilitating the flow of funds into the secondary mortgage market.

Fannie Mat and Freddie Mac are government- sponsored enterprises ( GSE)originally tisted on the stock exchange, but currently in conservatorship government word for bankruptcy) and under the control of Federal Housing Finance Agency FHFA which issues debt securities and uses the proceeds to purchase mortgages in the secondary mortgage market.

By securitizing its mortgage loans, a bank can remove these loans, which they originated from their balance sheets, but still collect fees for servicing the loans

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance

Authors: Harvey Rosen, Ted Gayer

10th edition

9781259716874, 78021685, 1259716872, 978-0078021688

More Books

Students also viewed these Finance questions