Economic Letter
Brief summaries of SF Fed economic research that explain in reader-friendly terms what our work means for the people we serve.
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Innovations and Recent Developments in Mortgage-Backed Securities
The securitization of mortgages has fundamentally changed home mortgage financing. In the past, the vast majority of home mortgages were originated and funded by depository institutions. Today about half of total home mortgage debt outstanding is held by a wide variety of financial institutions and investors in the form of mortgage-backed securities.