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.
Correct Answer:
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