When a mortgage is used as collateral for the issuance of a mortgage-backed security (MBS),the underlying mortgage is said to be "securitized." As of the end of 2010,approximately what percentage of residential mortgage loans in the U.S.was being sold into the secondary market and being used as collateral for the issuance of MBS?

Question

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As of the end of 2010, approximately 85% of residential mortgage loans in the U.S. were being sold into the secondary market and being used as collateral for the issuance of MBS. This means that the majority of home loans were being securitized and sold to investors.

When a Mortgage Is Used as Collateral for the Issuance