Q: What is the major difference between a CMO and the other types of mortgage-related securities?
A: Mortgage-backed securities are special investment proposals generated by financial intermediaries to…
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: 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: Explain the purchase-money mortgage?
A: Purchase-money mortgage: A purchase-money mortgage is a loan delivered to the debtor by the vendor…
Q: Which are the major types of mortgage-backed securities currently in use?
A: Following are the major types of mortgage-backed securities currently in use: Pass-through MBS It…
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: What is a mortgage-related security?
A: Mortgage-related security: A mortgage-related security is a kind of asset-backed security which is…
Q: When might a borrower want to have another party assume his liability under a mortgage loan?
A: There are basically two conditions when a borrower might want to have a third party:
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 Other characteristics of home equity loans?
A: A type of loan under which equity is used as collateral by the borrower is known as a home equity…
Q: What is a mortgage payable?
A: Long-Term LiabilitiesLong-term liabilities are the obligations of the business that need not be paid…
Q: Explain Commercial Mortgage-Backed Securities (CMBSs)?
A: Commercial mortgage backed securities: These are fixed-income securities that are backed by…
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: Which is the group of mortgage pools?
A: Mortgage pools: It is a group of mortgages held as security for mortgage backed security. In…
Q: Explain Restructuring the Mortgage Loan?
A: The mortgage loan restructuring option is generally considered by homeowners so that the loan…
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 difference between a bond and a term loan? what are the advantages of a term loan over a…
A: A bond is a fixed-income security that speaks to credit to a borrower (normally corporate or…
Q: Which are the Minimum Mortgage Requirements?
A: Meaning of mortgage: Mortgage is nothing but an instrument of debt that the creditor is obliged to…
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 a mortgage?
A: Mortgage : Mortgages is referred to the long-term debts owed by the business that are secured with…
Q: What is the major difference between CMOs and the other mortgage-backed securities?
A: Investment in securities are traded on Secondary Market where buyer and seller purchase or sale…
Q: What is a secured loan?
A: Secured Loan : it is a type of loan in which lender lend money on the basis of collateral or…
Q: How commercial loans and mortgages are structured in terms ofinterest and principal payments.
A: Commercial loan, as well as a mortgage, are being structured in terms of interest and principal…
Q: What is the Relationship of Note to Mortgage?
A: Relationship of Note to mortgage Document of Mortgage acts as a promissory note. A promissory note…
Q: Explain The Federal Home Loan Mortgage Corporation?
A: Federal Home Loan Mortgage Corporation is a private corporation which is established with the…
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: What are some types of credit derivatives?
A: A credit derivative is a type of financial contract where credit assets are kept as an underlying…
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: 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: What is a mortgage swap certificate?
A: Mortgage refers to debt instrument which is backed by collateral security. It refers to the kind of…
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: Explain Junior Mortgages?
A: Junior mortgage: A junior mortgage may be a contract subject to a to begin with or a past contract…
Q: Explain the Evolution of the Secondary Mortgage Market?
A: The secondary mortgage market is defined as a market created for the purpose and sale of existing…
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: What is mortgage bond?
A: A mortgage bond is secured by a mortgage, or a pool of mortgages, that are generally backed by…
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: 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…
What is the influence of the secondary mortgage market?
STEP 1:
INTRODUCTION
Secondary Mortgage market is the market where the buying and selling of mortgage and servicing loans takes place. In the secondary mortgage market, the loans offered by the banks to the people are securitised and sold to the investors.
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