Residential mortgage-backed bonds have been quite successful in the marketplace. However there is a risk that affects the issuer of such an instrument. This primary risk is: Ch19 Risk that the borrowers will default Risk that they cannot collect on government guarantees Risk that bond buyers will litigate Risk that homeowners will prepay their mortgages QUESTION 9 If you were to obtain a residential mortgage from a well-known national mortgage company, which of the following scenarios would be most likely? Ch19 The mortgage company would hold and service the loan over its life The mortgage company would retain servicing, but sell the mortgage itself The mortgage company would retain the mortgage but sell the servicing right The mortgage company would sell the mortgage and the servicing