What characterizes a securitized mortgage?

A securitized mortgage is characterized by being packaged with other mortgages and sold as a financial instrument. This process involves pooling multiple mortgages together, which can then be sold to investors as mortgage-backed securities (MBS). This pooling allows for diversification of risk and can provide liquidity to the mortgage market, enabling lenders to originate more loans.

In contrast, a single individual borrower securing a loan pertains to traditional mortgage lending and does not involve any securities or pooling of loans. A securitized mortgage can have a variety of interest rate structures, including fixed or variable rates, which means that stating it is only a type with a variable interest rate is incorrect. Furthermore, securitized mortgages can encompass residential as well as commercial properties, making it incorrect to state that they are only available for commercial properties. Thus, the defining feature of a securitized mortgage is its packaging and sale as a financial instrument, allowing it to be traded in capital markets.