Question: ill like! IHC Which statement is not correct for securitization? The SPV packages the loans together and creates new securities backed by the cash flows

ill like!

IHC Which statement is not correct for securitization? The SPV packages the loans together and creates new securities backed by the cash flows from the underlying loan pool, Typically, special purpose vehicle (SPV) is used in the traditional form of securitization Each pass-through mortgage securities represents a fractional ownership share in the mortgage pool The life of SPV is not limited to the maturity of the asset backed securities O Securitizing mortgages can generate fee income, reduce the liquidity risk, interest rate risk and credit risk of loan portfolios

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