An Interest-Only (IO) Mortgage Pass-Through Strip Has a Claim on the Present

question 116

True/False

An interest-only (IO) mortgage pass-through strip has a claim on the present value of interest payments on the mortgages in a GNMA pool.

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Definitions:

Independent Agency

An agency that is typically not located within a government department. It is governed by a board of commissioners, who are appointed by the president with the advice and consent of the Senate.

Consent Order

A legal document, approved by a judge, which formalizes an agreement reached between two parties in a dispute, without the need for a trial.

Disputed Behavior

Actions or conduct in question that are contested or challenged by parties in a disagreement.

Rule 10b(5) Violation

A breach of the SEC rule against fraud and deceit in the trading of securities.