you can choose more than one type of institution for each activity if needed.

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. Commercial Banks and Savings Institutions Activity in Mortgage Market Credit Unions and Finance Companies Mortgage Companies Mutual Funds Securities Firms Insurance Companies Sell shares and use the proceeds to create portfolos consisting of mortgage-backed securities Originate mortgages by working with borrowers to create loans where the real estate or property is used as collateral for the loan Use securitization to pool a variety of mortgages and sell mortgage-backed securities Offer instruments to help Institutions that invest in mortgages hedge (protect themselves) against large fluctuations in interest rates C