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

Q: Define the term Deferred Loan Repayments?

A: Answer: A deferred loan payment is nothing but a loan agreement in which the borrower may start…

Q: What is a mortgage pay-through bond (MPTB)?

A: Mortgage Pay-through bond: MPTBs (Mortgage Pay-through bonds) are delivered in contradiction of…

Q: What are credit derivatives, and how do they operate?

A: Derivative instrument is the financila instrument which derive its value form the underlying asset.

Q: Why What kind of stream of income does a debt security pay for the duration of the security? A fixed…

A: The Answer

Q: What is a mortgage REIT?

A: Answer: Mortgage REITs invests in mortgage and own land, loan capital to real estate owners for…

Q: Explain Restructuring the Mortgage Loan?

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

Q: What does the term structure of interest rates indicate?

A: The term structure of interest rates, also known as the yield curve, is a graphical representation…

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: how FHA buydown loans are structured?

A: Buydown loan is a type of loan in which lower interest rate is charged to the buyer. In such type…

Q: Explain Important Characteristics of Mortgage Pools?

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

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…