Which of the Following Is False

Which of the following is false?

A) A typical securitization involves borrowers, a loan originator, a special- purpose trust, a rating agency, a credit enhancer, an underwriter, and financial investors.
B) Through the pooling of financial obligations, prudent credit enhancement, favorable credit ratings, and appropriate structuring, a securitization has the potential to significantly reduce transactions costs associated with moving funds from lenders to borrowers.
C) Under favorable conditions, securitizations can result in borrowers paying lower borrowing costs, issuers earning higher profits, and investors receiving lower yields.
D) The real estate bubble from 2002 to 2007showed that securitization can lead to inappropriate extension of credit to overleveraged borrowers, an increase in defaults, and a dramatic decline in the value of some asset- backed securities.