Can someone really explain these in easy terms.
So people started getting mortgages, but my book says
People did not plan to hold them. "After taking a generous fee for originating the loans, they planned to sell them to Wall Street banks which were in the business of pooling mortgages and using the monthly payments they generated to issue mortgage bonds."
So What exactly does it mean to get generous fees for originating the loans? What does this mean?
And what does it mean by getting money from the pooled mortgages adn what's a mortgage bond? can someone please explain?
So people started getting mortgages, but my book says
People did not plan to hold them. "After taking a generous fee for originating the loans, they planned to sell them to Wall Street banks which were in the business of pooling mortgages and using the monthly payments they generated to issue mortgage bonds."
So What exactly does it mean to get generous fees for originating the loans? What does this mean?
And what does it mean by getting money from the pooled mortgages adn what's a mortgage bond? can someone please explain?