Define mortgage securitisation , with a relevent example?

Q: What is the difference between a pass-through mortgage-backed security and a collateralized mortgage…

A: Introduction: Mortgage is nothing but an instrument of debt that the creditor is obliged to pay off…

Q: How can mechanics’ liens achieve priority over first mortgages that were recorded prior to the…

A: Mechanic’s liens get the priority over the first mortgages when they depend on the state recording…

Q: Explain Second Mortgages and Shorter Maturities?

A: It is a type of mortgage loan which is similar to a mortgage loan which is tenable by a borrower's…

Q: understand how the secondary mortgage market functions, remember that the primary function of this…

A: Secondary mortgage market is the market where banks repackage and sell mortgages as securities to…

Q: Who are the parties to the contract of pledge and contract of mortgage?

A: Pledge is a formal promise or agreement while Mortgage is a type of loan that's used to finance…

Q: Explain Marking the Mortgage Portfolio to Market?

A: Marking to market is the process of offsetting a buyer or seller’s position in a futures contract on…

Q: Explain Mortgage passthrough securities (MPTs)?

A: Answer: One form of mortgage backed securities is a pass through security. Mortgage securities allow…

Q: Which of the following statements is not true about mortgages?

A: Mortgages are loans that are used to buy (or maintain) home, land or other types of real estate.

Q: Explain Some Closing Observations of Residential Mortgage-Related Securities?

A: Answer: A residential mortgage related securities is also called as residential mortgage backed…

Q: Define Mortgage payable.

A:

Q: Describe some of the motives and mistakes made by the mortgage securitizers?

A: To market as well as attract borrowers for lenders.Evaluation of the borrower's credit…

Q: How does mortgage pay-through bond (MPTB) resemble a mortgage-backed bond (MBB)? How does it differ?

A: Introduction: The mortgage pay-through bonds are also called as hybrid securities. These bonds have…

Q: Explain the influence of the pricing of a mortgage pass-through security?

A: The bond prices of a mortgage pass through security are influenced by: Change in interest rate:…

Q: Explain Mortgage-Equity Approach?

A: Mortgage-Equity Approach: It has advanced for quite a while. It is a numerical technique, in view of…

Q: Explain the difference between conventional mortgages, reverse mortgages, and second mortgages.

A: Difference between Conventional mortgage ,reverse mortgage , second mortgage Mortgage Mortgage is a…

Q: Explain the term Mortgage-Equity Capitalization?

A: The mortgage equity capitalization technique is not a technique which is that commonly used. However…

Q: When one examines a REIT investment, why it is important to consider the terms of the company’s…

A: REIT stands for Real Estate Investment Trust. It manages and operates properties that generate gain…

Q: Why is a mortgage a good debt?

A: Mortgage is typical loan given for purchase of home and ownership is reserved with financial…

Q: What is meant by mortgage foreclosure, and what alternatives are there to such action?

A: A mortgage refers to a debt instrument which is secured by collateral of a piece of land or a real…

Q: What are the various types/methods of mortgages.

A: The various types of mortgages as follows: Fixed rate mortgage:  In a fixed rate mortgage, the money…

Q: What is meant by a “purchase-money” mortgage loan? When could a loan not be a purchase-money…

A: A purchase-money mortgage loan is a loan that home sellers provide to the buyers of the home. Buyers…

Q: Which are the Payment Patterns and Security for Mortgages in Pools?

A: When the mortgage loan is given by banks or other financing firms, they sell those loans to mortgage…

Q: what is the difference between a debenture and a mortgage bond?

A: Bonds and debentures both are the fixed interest providing debt instruments issued by companies and…

Q: What is the secondary mortgage market? List three reasons why it is important?

A: Secondary market: Secondary market is defined as a place where purchase and sale of securities is…

Q: Explain Mortgage pass-through securities (MPTs)?

A: Mortgage pass through securities are also known as pass through securities are mortgage backed…

Q: Differentiate between a fixed-rate mortgage and avariable-rate mortgage.

A:

Q: Explain Acquiring Title “Subject to” a Mortgage?

A: Utilizing any real estate or property as a surety for obtaining any kind of loan is known as a…

Q: Explain the mortgage bond.

A: Mortgage bonds are type of corporate bonds. Businesses issue corporate bonds, which normally have…

Q: how collateralized mortgage obligations (CMOs) help to alleviate some of the reinvestment and…

A: Mortgage is a type of debt instrument which is generally secured by collateral. A borrower has to…

Q: Explain Incremental Borrowing Cost versus a Second Mortgage?

A: The lenders offer different repayment terms of the same loan to the different borrowers. The term of…

Q: What is the difference between a mortgage and amortgage-backed security?

A: Meaning of Mortgage Mortgage defines a loan against an asset or valuable object. Under Mortgage the…

Q: Describe the types of risk associated with mortgages.

A: Mortgage-backed securities: A mortgage backed security is an obligation that represents a claim on…

Q: When dealing in the world of mortgage pools and derivative investments, the notion of effective…

A: Effective duration usage is generally in the case of hybrid securities that can be further…

Q: Explain Mortgage-Backed Securities and the GNMA Payment Guarantee?

A: Asset backed securities (ABS) are financial securities. As the name suggests these securities are…

Q: Explain The Development of Mortgage-Related Security Pools?

A: Definition : For the granting of a mortgage-backed security, a mortgage pool is a collection of…

Q: Name the principal types of mortgage-related securities. What are the differences between them?

A: Principle type mortgage-related securities are those securities that are based on the mortgage as…

Q: In what ways is a CMBS structure different from a CMO backed by residential mortgages? Why

A: Mortgage-backed securities: The securities that are secured with mortgage or pool of mortgages are…

Q: Is real estate mortgage a real contract?

A: When two parties are get into contract for the purpose of sale and purchase in order to agreeing…

Q: Which Property can be Covered by a Mortgage?

A: Mortgage is a financial debt instrument signed by the borrower when he borrows money from the lender…

Q: Discuss the two theories of mortgage default. What are the most important factors that influence the…

A: Mortgage Default In simple term mortgage default which is described as default from the borrower to…