What is the process called when a mortgage company assembles several loans into one package for investors?

The process of assembling several loans into one package for investors is known as securitization. In this process, a mortgage company takes various mortgage loans and combines them into a single pool that can be sold as a security to investors. This allows the mortgage company to free up capital, providing them with the liquidity to offer additional loans.

Securitization is significant because it transforms illiquid assets (like individual mortgages) into liquid securities, which can enhance market efficiency and diversify risk. Through this mechanism, investors can invest in a share of the mortgage pool, benefiting from the income generated by the mortgage payments.

The other options do not accurately describe this process. Consolidation financing typically refers to the combination of multiple debts into a single loan to simplify payments. Warehousing is a short-term borrowing mechanism used by lenders to fund mortgage loans until they are sold off through securitization. Batch financing is not a commonly recognized term in the context of real estate or mortgage financing. Thus, the correct term associated with the packaging of loans for investors is securitization.