In the Modern Framework of Home Mortgage Lending, There Are

question 8

Multiple Choice

In the modern framework of home mortgage lending, there are four channels by which first mortgage home loans are created. Within which of the following channels would you typically find a Wall Street investment bank obtaining loans, pooling loans, and creating a senior-subordinate security structure?

• A) Traditional direct (portfolio) lending
• B) FHA/VA loan securitization
• C) Conforming conventional loan securitization
• D) Nonconforming Conventional loan securitization

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Definitions:

Carpals

The eight small bones that make up the wrist, connecting the hand to the forearm.

Phalanges

The bones of the fingers and toes in humans and other vertebrates.

Proximal End

The part of a limb or structure that is closest to the center of the body.

Radius

The radius is one of the two large bones of the forearm, located on the thumb side when the palm is facing up.