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Article: Mortgage backed securities: liquidation of the mortgage book.(Letter from the Editors)(Editorial)
- Article from:
- The Securitization Conduit
- Article date:
- March 22, 2001
- Author:
CopyrightCOPYRIGHT 2001 Financier, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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I. MORE THAN ONE EUROPEAN PATH TO THE SECONDARY MORTGAGE MARKET
A. MBS in the U.S.
In the U.S. mortgage backed securities created by securitizing mortgages are the core of the secondary mortgage market. Securitization integrates the bank market with the securities markets. Originators sell mortgages to the Government Sponsored Enterprises, the GSEs (the Federal Home Loan Mortgage Corporation, Freddie Mac and The Federal National Mortgage Association, FNMA) for cash or in exchange for MBS or to the private conduits for cash. The GSEs and private conduits finance purchases of mortgage pools via real estate investment mortgage conduits (REMICS) which issue ...