24 FIs remove mortgages from their balance sheets by Select

24 FIs remove mortgages from their balance sheets by: Select one: a. matching assets and liabilities b. securitizing mortgages (i.e., by issuing securities backed by newly originated mortgages) c. pooling recently originated mortgages together and selling them in the secondary market d. securitization and pooling

Solution

Correct option is > c. pooling recently originated mortgages together and selling them in the secondary market

FIs can sell the mortgages in secondary market for cash. Securitization and pooling is done at initial stages which is before secondary market and those assets appear in balance sheet of FIs after that.