What is the securitisation process and how mortgage originators may fund their future mortgage lending?
Answer 1. Since mortgage backed securities are used in the financial markets, I would assume there is some impact – although I am told the risk is spread, to limit risk and market volatility; I’m not an expert on financial markets. As far as I can determine a lot of reactions in the financial markets currently are sparked by fear, not a vision of the future. Again, I’m not an expert. 2. Securitization is a means to fund growth and does continue, however, on an extremely limited basis. It is my view that this will continue for the next several months – albeit at a much calmer level. Several large financial concerns are currently portfolioing some of their loans, i.e., not securitizing them; but, again I expect this to change in the next month or so. Securitization is not my area of expertise, however. You asked about “future mortgage lending”…I believe it will be more conservative, which is not a bad thing. Past history shows that many large financial concerns were buying irrational m
