In simple terms, the securitization process is

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The securitization process is a way for mortgage lenders to sell their accounts receivable (i.e. the money that borrowers owe them) to public investors. These receivables are packaged together into securities (e.g. mortgage-backed securities) that can be sold to investors who are looking for a steady stream of income. This process allows the mortgage lender to free up cash to use for other purposes, while also making it easier for investors to invest in mortgages. The other options are not entirely correct - while SIVs may be involved in the securitization process, they are not the only type of security that can be created. Additionally, while securitized products may be considered high-yield investments by some investors, they are not necessarily low-risk.

In Simple Terms, the Securitization Process Is