The emergence of mortgage securities propelled the development of mortgage companies, an entity significantly different from the thrifts and banks that previously dominated the mortgage landscape. Which of the following parties is responsible for providing mortgage origination services and initial funding within this new framework?

Question

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Mortgage bankers are responsible for providing mortgage origination services and initial funding within the new framework of mortgage securities. They originate and fund mortgage loans to be sold later in the secondary market as mortgage-backed securities. Mortgage brokers, on the other hand, act as intermediaries between borrowers and lenders to help secure a loan, but they do not provide initial funding. Portfolio lenders offer and hold mortgage loans in their own investment portfolios rather than selling them as securities. Security analysts analyze mortgage securities and other investments but do not provide origination services or funding.

The Emergence of Mortgage Securities Propelled the Development of Mortgage