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An MBB Differs from a CMO or a Pass-Through in That

question 37

Multiple Choice

An MBB differs from a CMO or a pass-through in that
I. the MBB does not result in the removal of mortgages from the balance sheet.
II. a MBB holder has no prepayment risk.
III. cash flows on a MBB are not directly passed through from mortgages.


Definitions:

Commission Charges

Fees paid to an agent or company for facilitating or completing a sale, often a percentage of the sale price.

Proceeds

The total amount of money received from a transaction or event, often after costs or other deductions are accounted for.

Commission Charges

Fees charged by brokers or agents for their services in facilitating transactions, often calculated as a percentage of the transaction value.

Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits.

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