Question 5 Select each correct statement regarding conforming loan securitization Selected Answers Liquidity risk is reduced greatly in part from the implicit government guarantee on MBS Mortgage originators (0.g. banks) retain the interest rate risk Answers: Liquidity risk is reduced greatly in part from the implicit government guarantee on MBS Default risk from holding mortgages is transferred to the Mortgage GSES Mortgage originators (e.g. banks) retain the interest rate risk The GSEs charge a payment guarantee fee to MBS investors in the form of reduced yield Question 6 Which of the following is not a mortgage contract? Selected Answer: 5-year adustable rate loan to a firm secured the firm's warehouse Answers: 5-year adustable rate loan to a firm secured the firm's warehouse 30-year amortized loan to a homeowner secured by the home and property 15-year amortized loan to a homeowner secured by the homeowner's pension fund all these examples are mortgage contracts Question 5 Select each correct statement regarding conforming loan securitization Selected Answers Liquidity risk is reduced greatly in part from the implicit government guarantee on MBS Mortgage originators (0.g. banks) retain the interest rate risk Answers: Liquidity risk is reduced greatly in part from the implicit government guarantee on MBS Default risk from holding mortgages is transferred to the Mortgage GSES Mortgage originators (e.g. banks) retain the interest rate risk The GSEs charge a payment guarantee fee to MBS investors in the form of reduced yield Question 6 Which of the following is not a mortgage contract? Selected Answer: 5-year adustable rate loan to a firm secured the firm's warehouse Answers: 5-year adustable rate loan to a firm secured the firm's warehouse 30-year amortized loan to a homeowner secured by the home and property 15-year amortized loan to a homeowner secured by the homeowner's pension fund all these examples are mortgage contracts