Question

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. thriftsB. credit unionsC. conduitsD. automated underwriters

Answer 1

conduit are authorities and private enterprises that pool loans and sold loan-backed securities.

Step-by-step explanation:

conduit are authorities and private enterprises that pool loans and sold loan-backed securities.

A financial organization that buys 3rd-party loan-backed securities to sell back to investors at new condition that will create the sale beneficial to issuing individual. Generally, the conduit pools sufficient funds from loan-back securities once the funds are reissued to the next party.