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When mortgage originators like banks can turn around and sell mortgages to Fannie Mae and Freddie Mac with no concern for possible default by the

When mortgage originators like banks can turn around and sell mortgages to Fannie Mae and Freddie Mac with no concern for possible default by the borrower, how will this arrangement influence the incentive of the originators to scrutinize the creditworthiness of the borrower? Would the incentive structure be different if the originator planned to hold the mortgage until it was paid off? Why or why not?

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