Briefly explain mortgage securitization and how it contributed to the economic crisis.

Q: Critically analyze concepts behind MBSs and how risk was diversified to secure lending. Analyze what…

A: Concept of Mortgage Backed Security A mortgage-backed security (MBSs) is an investment which is…

Q: Demonstrate how mortgage securitisation has contributed to the global economic crisis

A: Securitisation refers to issuing the securities backed up with the assets given as collateral. Banks…

Q: Explain Early Buyers of Mortgage Loans?

A: Mortgage loans are secured loans that can be availed for obtaining a huge loan amount by providing…

Q: Explain Second Mortgages and Shorter Maturities?

A: It is a type of mortgage loan which is similar to a mortgage loan which is tenable by a borrower's…

Q: understand how the secondary mortgage market functions, remember that the primary function of this…

A: Secondary mortgage market is the market where banks repackage and sell mortgages as securities to…

Q: Describe some of the motives and mistakes made by the mortgage brokers?

A: To market and attract new borrowers for the lenders Assessment of credit history of the borrowers.…

Q: How does a bank try to achieve the best possible risk adjusted return on its overall loan portfolio?

A: The possibility of a loss arising from a borrower's inability to repay a loan or meet legally…

Q: Explain Determinants of Mortgage Interest Rates?

A: Following are the determinants of Mortgage Interest Rates: Credit score: Banks and HFCs see the…

Q: interest rate risk differs between mortgage companies and other financial institutions

A: The mortgage company is a financial firm that gives out its own loans. They use their own funds or…

Q: What would these securities be called and what does the Bank need to do to ensure the loan monies…

A: Loans refer to the agreement between the borrower and the bank or financial institution for…

Q: Describe some of the motives and mistakes made by the mortgage securitizers?

A: To market as well as attract borrowers for lenders.Evaluation of the borrower's credit…

Q: Explain the influence of the pricing of a mortgage pass-through security?

A: The bond prices of a mortgage pass through security are influenced by: Change in interest rate:…

Q: Mortgages can be insured? Who insures mortgages and why? Can mortgages be sold? If so, who buys…

A: YES, mortgage can be insured. Mortgage insurance is an insurance policy that protects a mortgage…

Q: Analyse what exposure banking institutions had to the subprime mortgage crisis and how MBSs…

A: Funds- The total amount of loanable funds in an economy is the sum of all the money saved and…

Q: Explain how a mortgage company’s degree of exposure to interest rate risk differs from that of other…

A: Commercial banks, investment banks, insurance companies, and brokerage firms are the most frequent…

Q: Discuss in detail about the Loan securitization as a tool for managing risks by banks. Discuss about…

A: Securitization : It is a risk management tool used to reduce an risk that is particular to some…

Q: what is ADVANTAGES AND DISADVANTAGES OF THIS MORATORIUM FOR THE BANKS AND BORROWERS? provide…

A: A moratorium is a temporary cessation of activity until future circumstances necessitate its lifting…

Q: Explain the Factors Important in Mortgage Loan Pricing?

A: Mortgage loan pricing: The process of analysis and arriving at the exact interest rate for a…

Q: In the previous chapter, significant problems about the ability of borrowers to meet mortgage…

A: Introduction: Fixed interest rate charge on mortgage loan is the interest payment program with fixed…

Q: Explain further the effects/impacts of default on asset-backed security (ABS) to the financial…

A: The question is based on the concept of asset-backed security (ABS). ABS is a financial instrument…

Q: Demonstrate how mortgage securitization has contributed to the global economic crisis.

A: Mortgage securitization is the process of clubbing mortgages of individuals having same features to…

Q: When one examines a REIT investment, why it is important to consider the terms of the company’s…

A: REIT stands for Real Estate Investment Trust. It manages and operates properties that generate gain…

Q: What went wrong with Subprime mortgages?

A: Mortgage is the value which is offered by banks and other institutions to the public of firms…

Q: Briefly explain mortgage securitization and how itcontributed to the global economic crisis.

A: Mortgage securitization is nothing but combining the characteristics of same mortgages into a single…

Q: Describe the role of mortgage bankers and how they earn profits?

A: Mortgage Bankers are people or intermediaries within financial institutions who helped in the…

Q: What are the main types of mortgages issued by financial institutions ?

A: Mortgage means taking title of the borrowers property in exchange of lending money which is repaid…

Q: What is the influence of the secondary mortgage market?

A: STEP 1: INTRODUCTION Secondary Mortgage market is the market where the buying and selling of…

Q: Explain Qualified mortgages?

A: A Qualified Mortgage (QM) is a defined class of mortgages that meet certain borrower and lender…

Q: Explain Subprime Mortgage-Backed Securities?

A: Mortgage-backed security: A mortgage-backed security is a kind of asset-backed security which is…

Q: Explain Inflation, Mortgage Pricing, and Payment Structuring

A: Inflation:  Increase in price of the good is called inflation. When inflation increases, the…

Q: What is the secondary mortgage market? List three reasons why it is important?

A: Secondary market: Secondary market is defined as a place where purchase and sale of securities is…

Q: What’s the purpose of the mortgage amortization for investors

A: Amortization is dividing of mortgage loans into series of payments which constitute principal and…

Q: how collateralized mortgage obligations (CMOs) help to alleviate some of the reinvestment and…

A: Mortgage is a type of debt instrument which is generally secured by collateral. A borrower has to…

Q: is the importance of Mortgage Marke

A: Mortgage market is the place where you can get loans to buy the home and where you can buy or sell…

Q: please explain mortgage back securities and subprime loan and how lehman brother holdings used these…

A: Mortgage backed securities and sub prime loans are discussed below:

Q: Explain Important Characteristics of Mortgage Pools?

A: Mortgage pool:   Mortgage pool consist of combination of number of mortgages as its name explains.…

Q: A. What is the subprime mortgage market? B. What important role did these subprime mortgages play…

A: The mortgage market is defined as an underlying structure that helps in supporting the house through…

Q: Explain the Evolution of the Secondary Mortgage Market?

A: The secondary mortgage market is defined as a market created for the purpose and sale of existing…

Q: subprime mortgages. Why were mortgage companies aggressively offering subprime mortgages

A: Subprime mortgages are a kind of house loan. These types of loans are provided to poor people, those…

Q: Explain The Development of Mortgage-Related Security Pools?

A: Definition : For the granting of a mortgage-backed security, a mortgage pool is a collection of…

Q: In what ways is a CMBS structure different from a CMO backed by residential mortgages? Why

A: Mortgage-backed securities: The securities that are secured with mortgage or pool of mortgages are…

Q: What is mortgage market?

A: A mortgage is a loan backed by some particular real estate property collateral.

Q: Why might the cost of a mortgage loan be greater than the cost of using unsecured corporate debt to…

A: A mortgage shall be a credit the borrower utilizes to buy or retain a house and accepts to repay…