26-65 Which of the following is an incentive to securitize mortgage assets?
A)To reduce the regulatory tax burden on the FI.
B)To adjust the gap exposure of the FI.
C)To improve the liquidity of the FI.
D)To generate non-interest sensitive fee income.
E)All of the above.

Question

Quizplus · Accepted Answer

All of the given options are incentives for financial institutions to securitize mortgage assets. By securitizing mortgage assets, FIs can reduce regulatory tax burden, adjust gap exposure, improve liquidity and generate fee income that is not interest-sensitive.

26-65 Which of the Following Is an Incentive to Securitize