Mortgage-backed securities were created when ________ began buying mortgage loans from originators and bundling them into large pools that could be traded like any other financial asset.
A)GNMA
B)FNMA
C)FHLMC
D)B and C
E)A and B

Question

Quizplus · Accepted Answer

FNMA (Federal National Mortgage Association) and FHLMC (Federal Home Loan Mortgage Corporation) both played significant roles in creating mortgage-backed securities by purchasing mortgage loans and bundling them into securities.

Mortgage-Backed Securities Were Created When ________ Began Buying Mortgage Loans