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The conduit will usually pool enough funds from the mortgage-back securities before reissuing the funds to another party. A conduit may be used if a borrower is unable to meet the requirements of the original lender. See also conduit borrower, conduit issuer. The water was leaking, so I figured that there must be some kind of problem with a conduit that was causing the leak.
mid-15c., the adjustment of a dispute, a negotiated agreement, from Middle French transaction, from Latin transactionem (nominative transactio) an agreement, accomplishment, from past participle stem of transigere accomplish, drive or carry through, from trans- through + agere to drive (see act).