
When the mortgage banker originates a home loan, she actually creates two assets: the loan and the servicing rights. When the mortgage bank sells the servicing right to the loan, it historically has had a value of:
A) 0.25-0.50 percent of the loan.
B) 0.75-1.25 percent of the loan.
C) 1.50-2.25 percent of the loan.
D) 2.75-3.25 percent of the loan.
Correct Answer:
Verified
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