A Mortgage Pool Is Divided into A,B,C,and Z-Tranches as Discussed

question 71

Multiple Choice

A mortgage pool is divided into A,B,C,and Z-tranches as discussed in the textbook.What happens to the initial interest payment for the Z tranche?

• A) It is immediately passed through to holders of Z tranche securities.
• B) It is accumulated and held until the Z tranche securities mature.
• C) It is exchanged for principal from the A tranche.
• D) It is exchanged for principal from the B tranche.
• E) It is exchanged for principal from the C tranche.

---

Definitions:

Summary-Of-Benefits Close

A sales technique where the salesperson summarizes the product's benefits and features as a final effort to secure the sale.

Complex Process

A multifaceted or intricate procedure involving multiple steps, variables, or components that require careful management or understanding.

SELL Sequence

A sales technique that includes steps to Show, Explain, Lead through benefits, and Let the customer talk.

Garden Tub

A large, deep bathtub often oval in shape, designed for luxurious soaking and relaxation.