All Else Equal, Once a Mortgage Pool Has Aged, Prior

question 102

True/False

All else equal, once a mortgage pool has aged, prior prepayments of mortgages in the pool have no bearing on the current value of the pool or the future prepayment rates of mortgages left in the pool.

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Definitions:

Unconscious

The part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.

Hallucinogenic

Substances that cause hallucinations - perceptions and sensations that appear real though they are not actually present in the external environment.

Sensation

The sense organs’ detection of external physical stimulus and the transmission of information about this stimulus to the brain.

Perception

The process by which individuals select, organize, and interpret sensory information to understand their environment.