Question 28

0 / 2 pts

Which of the following statements is NOT CORRECT regarding Saving & Loan Associations (S&Ls) before securitization

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.