Which of the Following Describes the Waterfall Typically Used for Mortgages

question 8

Multiple Choice

Which of the following describes the waterfall typically used for mortgages pre-crisis?

• A) A distribution of cash flows to tranches with priority given to tranche with the highest rating
• B) A distribution of cash flows to tranches in proportion to their outstanding principals
• C) A distribution of losses to tranches so that tranches bear losses in proportion to their outstanding principals
• D) None of the above

---

Definitions:

Americans With Disabilities Act

A legal statute that forbids the unequal treatment of people with disabilities, covering various public sectors like employment, education, transit, and both public and private venues accessible to the public.

Safety Violations

Instances where safety regulations and standards are not followed, risking the health and safety of individuals.

Facility Supervisor

An individual responsible for overseeing the day-to-day operations, maintenance, and security of buildings, grounds, and facilities to ensure they meet the necessary standards and regulations.