Question by No88oN: what does securitization of mortgage debts mean?
please try to explain as much as possible

Thanks

Best answer:

Answer by the tax lady
It’s a fancy phrase for the bank that makes the loan bundling one loan with a 1000 others and selling them as a type of security. The problem was, the banks promised the securities were AAA rates when they should have had a grade of F-. One well known issue paid just 6 cents on the dollar after the market failed.

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