Multiple Choice
Servicing rights occur when an originator of a portfolio of mortgages sells that portfolio to an investor.
A) a reasonable fee for the originator would be 7%
B) the originator continues to collect the monthly payments and delinquent payments
C) the investor is responsible for sending out delinquent notices
D) the investor collects all delinquent payments and penalty payments
Correct Answer:
Verified
Correct Answer:
Verified
Q8: Weak-form market efficiency exists:<br>A) when the price
Q9: Options have intrinsic and market values:<br>A) market
Q10: The discounted cash flow (DCF)model of valuation
Q11: Debt is given preference over equity to
Q12: The value of mortgage-backed securities changes as
Q14: An agent is:<br>A) someone retained by a
Q15: For commercial property,a larger down payment is
Q16: Cash flows associated with servicing rights:<br>A) have
Q17: Pass-through Mortgage Backed Securities (MBSs)provide the investor
Q18: Financial intermediaries:<br>A) lend credit to create assets