One Hundred Identical Mortgages Are Pooled Together into a Pass-Through

question 45

Multiple Choice

One hundred identical mortgages are pooled together into a pass-through security.Each mortgage has a $150,000 principal,a fixed annual interest rate of 8 percent (paid monthly) ,and is fully amortized over a term of 30 years.

What is the monthly payment on the mortgage pass-through if a 44 basis point servicing fee is deducted monthly?

• A)$105,499.
• B)$114,700.
• C)$11,340.
• D)$1,055.

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