Securities That Are Created When a Mortgage Pool Is Divided

question 82

Multiple Choice

Securities that are created when a mortgage pool is divided into a number of tranches are referred to as ________.

• A)split strips
• B)divided CMOs
• C)sequential CMOs
• D)indexed mortgage splits
• E)tranche pools

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Definitions:

Single Payment

A one-time transaction involving the transfer of money or other value from one party to another.

Lender

An individual or institution that provides funds to another with the expectation that the funds will be repaid, typically with interest.

Equal Payments

Regular payments that are the same in amount over a period of time, typically referring to loans or mortgages.

Interest Annually

Interest that is calculated and paid once every year on a loan or investment.