In the securitization process, mortgages are pooled together and cash flows are packaged into securities to be sold in the secondary market. Agencies and private companies that pool mortgages and sell mortgage-backed securities (MBS) are often referred to as:

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Conduits are the agencies and private companies that pool mortgages and sell mortgage-backed securities (MBS). Thrifts and credit unions are financial institutions, but not necessarily involved in securitization. Automated underwriters are a technological tool used in mortgage origination, not securitization.

In the Securitization Process, Mortgages Are Pooled Together and Cash