The fresh GSE be sure transfers the credit exposure (we

Variety of MBS

The fresh securitization processes takes various forms, however, three large categories was described lower than: Fannie mae and Freddie Mac, Ginnie Mae, and private-title securitization (PLS). The root loans that define the latest MBS is actually related to the fresh new mortgage classifications discussed for the “An important Market” element of so it statement: essentially, conforming mortgages are included in Fannie mae and you can Freddie Mac computer MBS, government-insured mortgage loans when you look at the Ginnie Mae MBS, and you may nonconforming mortgage loans in private-identity MBS, however, there is actually exclusions.