If the Prepayment Schedule for a Mortgage Pool Increases to 100

question 21

Multiple Choice

If the prepayment schedule for a mortgage pool increases to 100 PSA from 50 PSA,the related interest-only strips will ________ in value and the related principal-only strips will ________ in value.

• A) decrease; decrease
• B) decrease; increase
• C) increase; decrease
• D) increase; increase
• E) remain constant; remain constant

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Definitions:

Groupthink

A mental effect observed in groups, where the collective preference for agreement or uniformity leads to illogical or ineffective decisions.

Death Qualified

A term specifically relating to jurors who are deemed eligible to serve on a capital case because they express a willingness to consider both the death penalty and life imprisonment as sentencing options.

Overrepresent

To have a disproportionately large number or percentage in comparison to the actual distribution within a population.

Recovered Memories

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