Which of the following are reasons that the actual prepayment rate on a specific mortgage pool backing a specific pass- through security may differ from PSA's assumed pattern? A. age of the mortgage pool and the size of the pool B. geographic location and assumability of mortgages in the pool C. age and job status of mortgagees in the pool D. level of the pool's coupon relative to the current mortgage coupon rate E. all of the above are reasons

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 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: Explain Coupon Rates, Interest Rates, and Number of Seasoned Mortgages in Pools?

A: Coupon rate: The total yield annually from fixed-income security is called a coupon. And the rate at…

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: Explain Mortgage passthrough securities (MPTs)?

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

Q: Explain in detail and with examples why the functioning of mortgage institutions could be considered…

A: Mortgage institutions are the companies that are mainly into the production of mortgage loans, be it…

Q: he sale of a mortgage portfolio by setting up mortgage pass-through securities is an example of A)…

A: A pass-through security is where mortgage holder create a security from pool of mortgages and sell…

Q: The process by which a loan, or more commonly a group, or pool, of loans, is packaged into a deal…

A: The question is related to Financing.

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

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

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A: Margin:  Margin is considered as certain percentage points that lenders added to the index rate in…

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A: A mortgage-backed security is a type of security which is backed up by mortgage meaning failing to…

Q: define the parameters included in the interest rate of a mortgage. In addition, explain which of the…

A: Parameters included in the interest rate of a mortgage. Parameters included in the interest rate of…

Q: Explain the Characteristics of Mortgage Pass-Through Securities?

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Q: Explain how a mortgage company’s degree of exposure to interest rate risk differs from that of other…

A: Commercial banks, investment banks, insurance companies, and brokerage firms are the most frequent…

Q: Explain Commercial Mortgage-Backed Securities (CMBSs)?

A: Commercial mortgage backed securities: These are fixed-income securities that are backed by…

Q: Explain how mortgage-backed securities, collateralised debt obligations and credit default swaps are…

A: Mortgage backed securities: Mortgage is a loan secured by some real estate property or commericial…

Q: What is private mortgage insurance?  How does it work to protect a lender from risk?   What are the…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

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: What are the three 'C's' of mortgage underwriting?  What is one way in which each of the 'C's' is…

A: When you buy house than you need loan for home but there is need of down payment also and remaining…

Q: What is the major difference between CMOs and the other mortgage-backed securities?

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

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Q: Have there been any intervening liens? These are liens recorded or attached after the recordation of…

A: Lien is a right on mortgaged property. Under lien, the ownership of asset belongs to the lender…

Q: Explain Collateralized mortgage obligations (CMOs)?

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

Q: What assumption about the future composite rate of interest on an adjustable-rate mortgage is made…

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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: Which of the following is the best explanation of what the call premium is?   Group of answer…

A: Call premium refers to the amount over (above) the par value of a share or bond which is payable to…

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 the greatest risk in mortgage banking? Group of answer choices Price Risk Fallout Risk…

A: Mortgage Banking:- In Moratage banking, a bank provides Loan servicing, Mortagage banks are…

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

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Q: Aside from changes in the general level of interest rates, what is the primary source of risk faced…

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A: Over collateralization implies that contract pools are larger noteworthy than the number of…

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…

Q: There are several ways that mortgages can be sold in the secondary market. Choose two and compare…

A: Mortgages can be sold in the secondary market through several ways. One of the ways could be that…