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From the home owner perspective, the derivatives are nice because the borrower are able to get a lower mortgage interest rate, or a longer mortgage, or qualify
by DwnVoteHoneyPot 5y ago
From the home owner perspective, the derivatives are nice because the borrower are able to get a lower mortgage interest rate, or a longer mortgage, or qualify for a mortgage when they could not before. The risk of non-payment is spread out, allowing less compensation for the risk.