The process of obtaining mortgages from the financial institutions that originated them, bundling the mortgages into tranches based on their risk level, and selling the tranches to institutional investors is called:
A)mortgage stripping.
B)mortgage underwriting.
C)securitization.
D)intermediation.

Question

Quizplus · Accepted Answer

The process described in the question is securitization, which involves bundling mortgages and selling them as securities to investors. Mortgage underwriting refers to the process of evaluating a borrower's creditworthiness and ability to repay a mortgage, while mortgage stripping is not a common term in the mortgage industry. Intermediation generally refers to the process of connecting borrowers and lenders, but does not specifically apply to the securitization process.

The Process of Obtaining Mortgages from the Financial Institutions That