A Mortgage-Back Security Is a Debt Security Created by Pooling

question 99

True/False

A mortgage-back security is a debt security created by pooling together a group of mortgage loans whose periodic payments belong to the holders of the security.

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Definitions:

Apparent Authority

The ability of an agent to bind a principal where the principal has not notified third parties of the restricted or terminated authority of the agent.

Principal

A person on whose behalf an agent acts.

Terminated

The end of an employee's employment due to dismissal or discharge by the employer, often for cause or due to organizational changes.

Apparent Authority

The appearance or assumption of authority based on the actions or statements of the principal, leading third parties to believe that a representative has authority to act.