In Simple Terms, a Mortgage-Backed Security Is

question 10

Multiple Choice

In simple terms, a mortgage-backed security is

• A) a portfolio of mortgages sold to investors through publicly issued bonds.
• B) a contract that transfers ownership of a lender's mortgages receivable.
• C) a contract that transfers the risk of non-collection from mortgage originators to other investors.
• D) a portfolio of mortgages sold to investors through publicly issued bonds, and a contract that transfers the risk of non-collection from mortgage originators to other investors.
• E) All of these are correct.

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Definitions:

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