Alt-A mortgages are residential property-backed loans made to borrowers who have better credit scores than subprime borrowers but provide less documentation than normally required for a loan application.
A no-documentation loan (often referred to as a 'no doc' loan) is a mortgage loan for which the borrower is not required to provide proof of income, employment, or assets.
Securitization is the process of turning assets into securities by packaging asset cash flows into tradable financial instruments. It involves an originator, a special purpose vehicle, and investors.
