Which of the following is NOT true regarding mortgaged-backed securiti

Which of the following is NOT true regarding mortgaged-backed securities (MBS)?

A) The MBS process allows the mortgage bank or other financial institution that made the
original mortgage loan to get its money back out of the loan and lend it to someone else.
B) Securitization provides liquidity to the mortgage market and makes it possible for banks to
loan more money to home buyers.
C) MBS are sold to investors who can hold them as an investment or resell them to other
investors.
D) All of the above statements are true.

ANSWER

D