understand how the secondary mortgage market functions, remember that the primary function of this market is to provide a mechanism for replenishing funds used by mortgage?

Q: Define the mortgage extension agreement?

A: An agreement between the borrower and the lender of the mortgage who mutually agrees to extend the…

Q: Define the term amortized but write down its meaning in your own words in reference to amortized…

A: Since there are multiple questions it is only possible to solve the 1st part.

Q: balloon-payment mortgage. Why might a financial institution prefer to offer this type of mortgage?

A: Step 1 A balloon payment is a one-time payment that is bigger than usual at the expiration of the…

Q: Explain Determinants of Mortgage Interest Rates?

A: Following are the determinants of Mortgage Interest Rates: Credit score: Banks and HFCs see the…

Q: Name two ways that FNMA currently finances its secondary mortgage operations.

A: The question is based to study the source of funding for the Federal National Mortgage Association…

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: 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 Factors Important in Mortgage Loan Pricing?

A: Mortgage loan pricing: The process of analysis and arriving at the exact interest rate for 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: Explain Residential Mortgage-Related Securities?

A: A types of security which is backed up by single or group of mortgages is known as Mortgage-based…

Q: What does “assignment” mean and why would a lender want to assign a mortgage loan?

A: Mortgage assignments refer to a document that shows that a mortgage is transferred from the original…

Q: Which of the following statements about "alternative" sources of funds for commercial mortgages is…

A: The highly structured cash flow of commercial-backed securities is complex and servicers are needed…

Q: Explain Restructuring the Mortgage Loan?

A: The mortgage loan restructuring option is generally considered by homeowners so that the loan…

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: Explain GPM Mortgage Loans and Effective Borrowing Costs

A: Graduated-payment contract (GPM) loans: It may be a sort of fixed-rate mortgage in which…

Q: Explain Assumption of Mortgage?

A: An individual can obtain loan by mortgaging its property to the lender. The property is said to be…

Q: What are the main types of mortgages issued by financial institutions ?

A: Mortgage means taking title of the borrowers property in exchange of lending money which is repaid…

Q: What is the influence of the secondary mortgage market?

A: STEP 1: INTRODUCTION Secondary Mortgage market is the market where the buying and selling of…

Q: Explain Qualified mortgages?

A: A Qualified Mortgage (QM) is a defined class of mortgages that meet certain borrower and lender…

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: A loan secured with a financial asset (eg. Accounts receivables) is a called a ___________ loan.…

A: Financial asset is a liquid asset which can be easily sold in the market. A financial asset can be…

Q: Differentiate between leasing and long term bank loan as source of finance

A: Banks play an important role in financing; there are various types of bank financing one of them is…

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 the different components of the Mortgage Instrument and distinguish it with promissory…

A: The details of the mortgage, including interest rates, payment durations, payment dates, and legal…

Q: Explain Collateralized mortgage obligations (CMOs)?

A: Collateralized mortgage obligation is referred to as complex debt security  that directs the…

Q: What’s the purpose of the mortgage amortization for investors

A: Amortization is dividing of mortgage loans into series of payments which constitute principal and…

Q: Explain The Mortgage Instrument?

A: The question is based on the concept of mortgage, which is  a contract between lender and borrower.

Q: is the importance of Mortgage Marke

A: Mortgage market is the place where you can get loans to buy the home and where you can buy or sell…

Q: Explain Types of Mortgage Debt and Other Obligations?

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

Q: Explain Important Characteristics of Mortgage Pools?

A: Mortgage pool:   Mortgage pool consist of combination of number of mortgages as its name explains.…

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: Name the major types of credit enhancement used for commercial-backed mortgage securities.

A: The commercial mortgage backed securities or CMBS are a class of mortgage backed securities that are…

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: Can you Discuss the Reverse Annuity Mortgage ,(RAM)? and also Identify and explain briefly the types…

A: A mortgage is referred to as a loan sanctioned against an immovable asset such as a commercial…

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: What is mortgage market?

A: A mortgage is a loan backed by some particular real estate property collateral.

Q: Explain the terms of Classification of Mortgage Loans?

A: Mortgage Loan     Mortgage means transfer of interest to immovable property in order to secure the…

Q: Explain the Market Value of a Loan?

A: The market price of Debt refers to the value investors would be willing to shop for a company’s debt…

Q: Explain Partially Amortizing, Constant Payment Mortgage (CPM) Loans with example?

A: Amortization can be defined as paying back of the loan amount in installments according to the…