Financial Risk Manager Part 1

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Explanation:

Correct answer: D

In an RMBS securitization:

The originator pools mortgages and sells them to an issuer/SPV.
The SPV issues securities to investors.
Securitization helps originators raise cash so they can make more loans.
The servicer collects payments, manages delinquent loans, and remits cash flows, but it does not ensure that the SPV fulfills its contractual obligations.

Therefore, D is the exception.

Explanation:

Correct answer: D

In an RMBS securitization:

The originator pools mortgages and sells them to an issuer/SPV.
The SPV issues securities to investors.
Securitization helps originators raise cash so they can make more loans.
The servicer collects payments, manages delinquent loans, and remits cash flows, but it does not ensure that the SPV fulfills its contractual obligations.

Therefore, D is the exception.

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Q-102.1. Each of the following is true about the securitization of residential mortgage backed securities (RMBS) EXCEPT for:

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MManit

Last updated: April 18, 2026 at 11:32

The originator(s) pools mortgage loans and sells them an issuer or special purpose vehicles (SPVs), which issues securities to investors

Key benefits of securitization, including RMBS, include but are not limited to (i) transfer of credit risk to investor and (ii) diversification via pooling of credit-sensitive assets

By selling mortgage loans to issuers in a securitization, originators raise cash to underwrite new, additional loans

The mortgage servicer ensures that the SPV delivers on its contractual obligations