Question 8 Select each correct statement regarding conforming loan securitization Selected Answers: The GSEs charge a payment guarantee fee to MBS investors in the form of reduced yield Liquidity risk is reduced greatly in part from the implicit government guarantee on MBS Mortgage originators (e.g. banks) retain the interest rate risk Answers: The GSEs charge a payment guarantee fee to MBS investors in the form of reduced yield Liquidity risk is reduced greatly in part from the implicit government guarantee on MBS Mortgage originators (e.g. banks) retain the interest rate risk Default risk from holding mortgages is transferred to the Mortgage GSES Question 8 Select each correct statement regarding conforming loan securitization Selected Answers: The GSEs charge a payment guarantee fee to MBS investors in the form of reduced yield Liquidity risk is reduced greatly in part from the implicit government guarantee on MBS Mortgage originators (e.g. banks) retain the interest rate risk Answers: The GSEs charge a payment guarantee fee to MBS investors in the form of reduced yield Liquidity risk is reduced greatly in part from the implicit government guarantee on MBS Mortgage originators (e.g. banks) retain the interest rate risk Default risk from holding mortgages is transferred to the Mortgage GSES