In the Securitization Process, Mortgages Are Pooled Together and Cash

question 2

Multiple Choice

In the securitization process, mortgages are pooled together and cash flows are packaged into securities to be sold in the secondary market. Agencies and private companies that pool mortgages and sell mortgage-backed securities (MBS) are often referred to as:

• A) thrifts
• B) credit unions
• C) conduits
• D) automated underwriters

---

Definitions:

Stakeholder Orientation

An organizational approach that prioritizes the considerations and contributions of all stakeholders in business decision-making and strategy development.

Milton Friedman

An American economist and Nobel laureate who was a leading proponent of free-market capitalism.