Final answer:
Securitization allows investors to get a loan or other receivables without involving a bank as an intermediary. It offloads mortgage risks to investors and provides benefits such as reducing the need for extra funds by the bank and offering a steady stream of income for investors.
Step-by-step explanation:
Securitization allows investors to get a loan or other receivables without having a bank as an intermediary. When a bank sells its local loans and buys a mortgage-backed security based on loans from different parts of the country, it can avoid exposure to local financial risks. This process offloads the mortgage risks to investors and offers benefits such as reducing the need for extra funds by the bank and providing a steady stream of income for investors.