The process of packaging and/or selling mortgages that are then used to back publicly traded debt securities is called

Question

Quizplus · Accepted Answer

The process described in the question is securitization. This involves bundling individual mortgages or other debt securities into a pool and then selling interests in that pool to investors as securities. These securities are then traded on public exchanges like stocks or bonds. This process can increase liquidity in the mortgage market and allow for more funds to be collected and invested in mortgages.

The Process of Packaging And/or Selling Mortgages That Are Then