Pros and cons of investing in securitized assets
As an investor, you have lots of options when it comes to places to put your money. Why you'd want to invest in something like mortgage-backed securities, which can be risky, is a good question. There are certainly advantages to doing so, including investing in an asset that is likely to pay reasonably well while also posing a reasonably low risk.
You should be given great detail about the composition of your new portfolio of loans, but mortgage-backed securities, in particular, have been mis-rated before (see the Great Recession), and that risk persists due to the way they're put together. You may also not get the entire return you expected if the loans are paid back early, reducing the total interest that will be paid by the borrower.