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Securitization of mortgages enabled various dimensions of risks embedded in pools of mortgages to be distributed to investors with varying degrees of tolerance for credit and interest rate risk and with differing expectations about the future path of economic valuables. Before securitization, the bank that originated a pool of mortgages tended to be the financier of these loans until the loan was paid off. This meant that all of the risks embedded in the mortgage pool remained on the balance sheets of the originating bank. This was the mainstream financing technique was. True or false and why?

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