All of the following would reduce the agency problems of the originate-to-distribute model except

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Quizplus · Accepted Answer

Encouraging more complex mortgage products can actually increase the agency problems of the originate-to-distribute model, as it can lead to greater asymmetry of information between the borrower and lender, and increase the potential for default or foreclosure. The other options all address the root causes of agency problems in the model by promoting transparency, accountability, and responsible borrowing practices.

All of the Following Would Reduce the Agency Problems of the Originate-To-Distribute