- Which is a disadvantage of securitization?
A. The bank does not get mortgage payments
B. The investor does not take the risk of default
C. All the risk is passed on to the purchaser of the security. If the mortgages go into default, the bank is no longer liable for the mortgages
D. There is no disadvantage as securitization is more secured
I want to go with C but not 100% sure.
Old question from 2009 kaplan bank