Question
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
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