Whhhooooooof . . . OK so all this mortgage securitization business goes way over my head . . . but I’ve just had a great PR pinged into my inbox which answeres some very interesting questions. You can see the original article here.
Let’s start with the basics; What is mortgage securitization?
Very simply, it’s when mortgages are stuck together, chopped into chunks and then sold on as bonds. This leads directly to mortgage backed securities . . . A bond repaid with the payments on the original mortgages.
Easy!
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