Multiple Choice
Which of the following is true concerning loans sold with recourse?
A) Most loans are sold with recourse.
B) The buyer cannot put the loan back to the selling FI.
C) The FI has no explicit liability if the loan eventually goes bad.
D) The FI that originated the loan retains a contingent credit risk liability.
E) The loan sale is technically removed from the balance sheet.
Correct Answer:
Verified
Correct Answer:
Verified
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