The driving force behind the securitization of mortgages and automobile loans has been
A) the rising regulatory constraints on substitute financial instruments.
B) the desire of mortgage and auto lenders to exit this field of lending.
C) the improvement in computer technology.
D) the relaxation of regulatory restrictions on credit card operations.

Question

Quizplus · Accepted Answer

The improvement in computer technology has made securitization of mortgages and automobile loans more efficient and effective, allowing for the creation of complex securities made up of thousands of individual loans. This has driven the growth of the securitization market. The other options are not accurate explanations for the driving force behind securitization.

The Driving Force Behind the Securitization of Mortgages and Automobile