In the secondary mortgage market, what is the primary difference between a 'cash window' transaction and a securitization?
Correct Answer
C) Cash window purchases are for immediate portfolio investment
Cash window transactions involve direct purchase of loans for the buyer's investment portfolio, while securitization involves pooling loans to create mortgage-backed securities for sale to investors. Cash window deals are typically for portfolio retention rather than further distribution.
Why This Is the Correct Answer
Cash window transactions involve direct purchase of loans for the buyer's investment portfolio, while securitization involves pooling loans to create mortgage-backed securities for sale to investors. Cash window deals are typically for portfolio retention rather than further distribution.
More Mortgage Knowledge Questions
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