The most common type of mortgage-backed security is:
A) The mortgage pass-through, a security that has the borrower's mortgage payments pass through the trustee before being disbursed to the investors.
b) Collaterized mortgage obligations, a security which reduces prepayment risk.
c) The participation certificate, a security which passes the borrower's mortgage payment equally among all the owners of the certificate.
d) the securitized mortgage, a security which increases the liquidity of otherwise illiquid mortgaes,
The mortgage pass-through, a security that has the borrower's mortgage payments pass through the trustee before being disbursed to the investors.
a morgage backed security is type of asset backed securities which is secured by a mortgage
The most common type of mortgage-backed security is: A) The mortgage pass-through, a security that has...
the most common type of Mortgage-Backed security is: A. the mortgage pass-through, a security that has the borrower's mortgage payments pass through the trustee before being disbursed to the investors. B. the participation certificate, a security which passes the borrower's mortgage payments equally among all the owners of the certificates. C. the securitized mortgage, a security which increases the liquidity of otherwise illiquid mortgages. D. collateralized mortgage obligations, a security which reduces prepayment risk.
One hundred identical mortgages are pooled together into a pass-through security. Each mortgage has a $100,000 principal, a fixed interest rate of 9% p.a. (paid monthly), and is fully amortized over a term of 30 years. Assume the bank charges servicing fees of 40 basis points and GNMA charges 10 bp to insure the timing of the payments. If investors expect no prepayment on these loans over the 30 years life of the pass-through, what should they pay for this...