Question by ee: Can someone explain in layman’s terms, what securitization of mortgages is/means?
From what I’ve read banks supposedly ‘pooled’ their mortgages and loans and sold them to others at a profit. I don’t understand why others would pay them at a rate where they make a profit. I don’t understand why ‘pooling’ mortgages results in a value that results in a profit being made when it is sold. Why not just keep them, why sell them in the first pladce?
Any help would be really appreciated, if not answers then even links to other websites.
Best answer:
Answer by Ju
Sorry i know little about mortgages ,nothing to help you,very sorry.
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