About originate-to-distribute model

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Reference no: EM131085529

Which of the following is true about originate-to-distribute model:

A. Under this model lenders originate loans that are then distributed through securitization such that the lender retains little or no exposure to the loan

B. Under this model originators of the loan had every incentive to maintain loan quality.

C. Under this model originators of the loan had incentive to increase loan origination volume.

D. only A and B of the above

E. only A and C of the above

Reference no: EM131085529

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