Which of the following is NOT true of the "Originate to Distribute" Model? ...

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Accounting

Which of the following is NOT true of the "Originate to Distribute" Model?

  • A. There is an incentive for the originator to approve as many loans as possible, thereby earning increasing amounts of fees.
  • B. The Originate to Distribute Model is believed to have made no material contribution to the Global FInancial Crisis
  • C. The originator has little incentive to perform due diligence on the loans, unless there are risk retention requirements,
  • D. Loans originated in this model are usually distributed as securitized products and serviced by Special Purpose Vehicles

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