The process of pooling mortgages or other types of loans and selling the claims or securities against that pool in the secondary market is called

Question

Quizplus · Accepted Answer

Securitization involves pooling mortgages or other types of loans and selling the claims or securities against that pool in the secondary market. Refinancing involves replacing an existing loan with a new one with better terms. Private placement involves offering securities directly to a small number of investors without a public offering. Pooling is just one step in the securitization process.

The Process of Pooling Mortgages or Other Types of Loans