Banking · Securitization
Why are certain assets purchased from other entities generally excluded from securitization eligibility by originators?
- 1Because their quality and original underwriting standards may not be transparent✓
- 2Because they always default on repayment
- 3Because they require RBI's prior approval in every case
- 4Because they reduce profitability of the originator
Correct answer
Because their quality and original underwriting standards may not be transparent
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