Securitization

Wall Street Execs Weigh in on Securitization Accounting 

In plain English, much of the securitization model that has fueled the modern mortgage market is tied to what’s known as a Qualifying Special Purpose Entity — or QSPE for short, and often called “the Q” in industry slang. QPSEs receive off-balance sheet treatment, or “sale accounting” treatment, that has largely enabled much of the growth in modern secondary markets.