Multiple Choice
Overseas bank is pooling 50 similar and fully amortized mortgages into a pass-through security. The face value of each mortgage is $100,000 paying 180 monthly interest and principal payments at a fixed rate of 9 percent per annum.
-For the first monthly payment, what are the interest and principal portions of the payment?
A) $37,500 principal and $13,213 principal.
B) $37,500 interest and $13,213 principal.
C) $37,500 principal and $7,809 interest.
D) $37,500 interest and $7,809 principal.
E) $37,500 interest and $17,756 principal.
Correct Answer:

Verified
Correct Answer:
Verified
Q5: Unlike GNMA, FNMA will securitize conventional mortgages
Q8: Investors in GNMA pass-through securities are exposed
Q11: Which of the following good news and
Q37: Which of the following is an incentive
Q39: Why are the regular GNMA pass-throughs not
Q42: The underlying GNMA 15-year mortgage pool has
Q43: As of 20, the amount of mortgage-backed
Q62: A principal only (PO) mortgage-backed strip is
Q73: Which type of loans are securitized most
Q104: Early prepayments on mortgages backing a CMO