This article has been translated from English to Gen Z Slang.
A mortgage-backed security is basically like having a piece of a big money pie 🥧 made from a bunch of people's home loans. 💸
So, after ya get a mortgage, the bank or mortgage peeps might bundle your loan with like a gazillion others and sell it off to big wigs like Ginnie Mae, Fannie Mae, or Freddie Mac. These entities, no lie, sound like characters from a retro sitcom. 😂
Then, they get all fancy with a thing called securitization. 📈