Which of the following is an incentive to securitize mortgage assets?
A)To reduce the regulatory tax burden on the FI.
B)To adjust the gap exposure of the FI.
C)To improve the liquidity of the FI.
D)To generate non-interest sensitive fee income.
E)All of the options.

Question

Quizplus · Accepted Answer

All of the options are incentives to securitize mortgage assets. Securitization allows FIs to reduce regulatory tax burden, adjust gap exposure, improve liquidity, and generate fee income through the sale of mortgage-backed securities.

Which of the Following Is an Incentive to Securitize Mortgage