A financial institution that pools a group of loans for sale to other institutions has the loans.

Name: A financial institution that pools a group of loans for sale to other institutions has the loans.
Brand: Quizplus
Rating: 4.7 (47 reviews)

Question

Quizplus · Accepted Answer

Securitization refers to the pooling of financial assets (such as loans) into a package that can be sold as a financial security to other investors, allowing the financial institution to raise more capital. This process is commonly used in the mortgage industry to create mortgage-backed securities.

A Financial Institution That Pools a Group of Loans for Sale