Which of the following was a problem faced by mortgage lenders in trying to sell

Question

Which of the following was a problem faced by mortgage lenders in trying to sell their mortgages in the secondary market prior to the creation of mortgage backed securities?

The large dollar amounts of most single mortgages made finding a buyer difficult.

Mortgages were not standardized making them harder to sell.

The lack of default risk made the returns too low, resulting in fewer buyers.

Due to their simple design, mortgages were easy to service and lenders frequently charges too much for the loan, resulting in fewer buyers.

The large dollar amounts of most single mortgages made finding a buyer difficult.

Mortgages were not standardized making them harder to sell.

The lack of default risk made the returns too low, resulting in fewer buyers.

Due to their simple design, mortgages were easy to service and lenders frequently charges too much for the loan, resulting in fewer buyers.

Explanation / Answer

The lack of default risk made the returns too low, resulting in fewer buyers.

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