| Another issue related to securitization concerns the measure and concentration of risk that the banks involved in origination actually take on. |
| If mortgage securitization is snake oil, then it was snake oil that was patented and marketed by the U. S. government. |
| Financial innovation, such as mortgage securitization, was on balance beneficial and excesses were likely to be self-regulated. |
| However, securitization may not get a lender completely off the hook in the eyes of credit analysts. |
| The Company remains exposed to certain risks of default on the amount of receivables under securitization. |
| But the cost of securitization is greater than the cost of sourcing funds in the inter-bank and retail deposit markets. |
