Which of the following statements is NOT CORRECT regarding Saving & Loan Associations (S&Ls) before securitization Group of answer choices S&Ls might not have enough money to fund an entire home. S&Ls were raising money through short-term floating-rate deposits, but making loans in the form of long-term fixed-rate mortgages. When interest rates increased, S&Ls faced crisis because they had to pay more to depositors than they collected from mortgagees. S&Ls had legal resources to collect mortgage payments from borrowers.
Which of the following statements is NOT CORRECT regarding Saving & Loan Associations (S&Ls) before securitization Group of answer choices S&Ls might not have enough money to fund an entire home. S&Ls were raising money through short-term floating-rate deposits, but making loans in the form of long-term fixed-rate mortgages. When interest rates increased, S&Ls faced crisis because they had to pay more to depositors than they collected from mortgagees. S&Ls had legal resources to collect mortgage payments from borrowers.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Which of the following statements is NOT CORRECT regarding Saving & Loan Associations (S&Ls) before securitization
Group of answer choices
S&Ls might not have enough money to fund an entire home.
S&Ls were raising money through short-term floating-rate deposits, but making loans in the form of long-term fixed-rate mortgages.
When interest rates increased, S&Ls faced crisis because they had to pay more to depositors than they collected from mortgagees.
S&Ls had legal resources to collect mortgage payments from borrowers.
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