So let me try to explain the mortgage monstrosity in short plain statements. Based upon my analysis of information in the public domain, there are two ways that anyone claim a loan was securitized — carved up into pieces and then sold to multiple buyers or bundled with other loans. Either way — carving or bundling is meant to decrease risk. If one loan goes bad it is only a small part of the entire portfolio of loans you bought so the perception of risk is reduced.
Join us on our
Share this page with your friends
on your favorite social network: