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Where existing mortgages and servicing rights are bought and sold.
True
False

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Final answer:

Existing mortgages and servicing rights can be bought and sold in the financial market through securitization. This process played a significant role in the 2008-2009 financial crisis.

Step-by-step explanation:

True. Existing mortgages and servicing rights can be bought and sold in the financial market. This process is known as securitization, where mortgage loans are bundled together into a financial security and sold to investors. Investors receive a rate of return based on the level of payments made on the mortgages that stand behind the security. Securitization became more prevalent in the mid-2000s and played a significant role in the 2008-2009 financial crisis.

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