Mortgage Servicing and Loan Modifications: 1.2.3.4.1 In general
Securitization is the process of packaging loans as securities and selling the rights to the future income stream to investors.101 These rights are pooled in a variety of different ways so that the income stream from a single loan may be divided up and sold as part of two or more different securities. The borrowers’ monthly payments on the loan cover the return to the investors.