Finance

What is 'private label' mortgage-backed security (MBS) in the context of Ohio real estate finance?

AA mortgage insured by a private company
BAn MBS issued by a private financial institution (not Fannie Mae, Freddie Mac, or Ginnie Mae)✓ Correct
CA fixed-rate mortgage held in a bank's own portfolio
DA state of Ohio-issued housing bond

Explanation

Private label (non-agency) MBS are issued by private financial institutions without the backing of government-sponsored enterprises. They carry higher risk than agency MBS and played a role in the 2008 financial crisis.

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