Which One of the Following Statements Is Correct Regarding Mortgage

question 55

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) A MBS is a type of a 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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