Activity in Mortgage Market Offer instruments to help institutions that invest in mortgages hedge (protect themselves) against large fluctuations in interest rates. Originate mortgages by working with borrowers to create loans where the real estate or property is used as collateral for the loan. Sell shares and use the proceeds to create portfolios consisting of mortgage-backed securities. Use securitization to pool a variety of mortgages and sell mortgage-backed securities. Commercial Banks and Savings Institutions Credit Unions and Finance Companies Mortgage Mutual Funds Companies Securities Insurance Firms Companies
Activity in Mortgage Market Offer instruments to help institutions that invest in mortgages hedge (protect themselves) against large fluctuations in interest rates. Originate mortgages by working with borrowers to create loans where the real estate or property is used as collateral for the loan. Sell shares and use the proceeds to create portfolios consisting of mortgage-backed securities. Use securitization to pool a variety of mortgages and sell mortgage-backed securities. Commercial Banks and Savings Institutions Credit Unions and Finance Companies Mortgage Mutual Funds Companies Securities Insurance Firms Companies
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Please explain your reasoning. I'm having a hard time understanding the work. Thanks;)
Transcribed Image Text:Activity in Mortgage Market
Offer instruments to help institutions that invest
in mortgages hedge (protect themselves)
against large fluctuations in interest rates.
Originate mortgages by working with borrowers
to create loans where the real estate or property
is used as collateral for the loan.
Sell shares and use the proceeds to create
portfolios consisting of mortgage-backed
securities.
Use securitization to pool a variety of mortgages
and sell mortgage-backed securities.
Commercial
Banks and
Savings
Institutions
Credit Unions
and Finance
Companies
Mortgage
Companies
0
Mutual Securities Insurance
Firms Companies
Funds
O
0
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