Which of the following statements is FALSE?

1. The secondary mortgage market enables the issuer to sell existing mortgages and thereby replenish funds with which new loans can be originated.
2. When issuing mortgage-backed bonds, the issuer retains ownership of the underlying mortgage to the bondholders.
3. One major difference between mortgage securities and corporate bonds is that mortgage securities tend to be overcollateralized.
4. When the coupon rate of a MBB exceed market interest rates, the price of the bond will be greater than its par value.