Which One of the Following Statements Is Correct Regarding Mortgage-Backed

question 106

Multiple Choice

Which one of the following statements is correct regarding mortgage-backed securities (MBSs) ?

• A)There is a separate MBS for each individual mortgage processed by a mortgage broker.
• B)An MBS is a type of debenture.
• C)The originating bank is the seller of MBSs to investors.
• D)Investors in MBSs are protected from default.
• E)Investors in MBSs are subject to real estate deflation risk.

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Aesthetic Environment

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