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What is securitization?

The process of pooling loans and converting them into tradeable securities (such as MBS or CMBS) sold to investors, which gives originating lenders liquidity to make new loans.

Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.

Related terms

From the free Real Estate Finance course by Devon Coombs, CPA, MBA.