Chapter 26 LOAN SALES TB.pdf

Chapter 26 LOAN SALES TB.pdf - Chapter 26 Loan sales test...

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Chapter 26 Loan sales test bank questions 1. In regard to a CMO, which of the following have the shortest average life with a minimum of prepayment protection? A. Class A bonds . B. Class B bonds. C. Class C bonds. D. Class Z bonds. E. Class R bonds. 2. Why are the class C bonds highly attractive to insurance companies and pension funds? An FI funds a $5 million residential mortgage by allocating capital and by issuing demand deposits. The demand deposits have a reserve requirement of 10 percent and a deposit insurance premium of 23 basis points. 3. What are the initial minimum capital requirements on the mortgage?
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  • SeanTurnell

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