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From our study of the 2008 Financial Crisis, which of the following is not true about Mortgage Backed Securities(MBS) and Collateralized Mortgage Obligations (CMO)? Group

From our study of the 2008 Financial Crisis, which of the following is not true about Mortgage Backed Securities(MBS) and Collateralized Mortgage Obligations (CMO)?

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MBS and CMOs have prepayment risk

Mass default of MBSs resulted in more house foreclosures

CMOs were used to spread risk to smaller and specified investors

CMOs are created from CDSs

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