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

question 16

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?

• A)$100,000.
• B)$110,065.
• C)$12,000.
• D)$12,000,000.
• E)$80,000.

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Definitions:

Material Fact

An important fact that could influence a decision in a contract, negotiation, or legal case; its omission or misrepresentation could constitute fraud.

Omission

The act of leaving something out or not including something that should have been included.

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Conduct that falls below the established standard of care, demonstrating a disregard for the safety or rights of others.

Willful Misconduct

Intentional or deliberate wrongdoing, especially by an employee or official, that is performed with disregard for the consequences.