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

Q: What is the difference between a pass-through mortgage-backed security and a collateralized mortgage…

A: Introduction: Mortgage is nothing but an instrument of debt that the creditor is obliged to pay off…

Q: What is the major difference between a CMO and the other types of mortgage-related securities?

A: Mortgage-backed securities are special investment proposals generated by financial intermediaries to…

Q: Define the term amortized but write down its meaning in your own words in reference to amortized…

A: Since there are multiple questions it is only possible to solve the 1st part.

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: in layman's terms, what is the diff. between a mortgage backed security and a credit default swap?

A: The borrowings made for purchasing fixed-assets like land, property, home and apartments is…

Q: Which are the major types of mortgage-backed securities currently in use?

A: Following are the major types of mortgage-backed securities currently in use: Pass-through MBS It…

Q: What is a mortgage-related security?

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

Q: When might a borrower want to have another party assume his liability under a mortgage loan?

A: There are basically two conditions when a borrower might want to have a third party:

Q: Explain the Other characteristics of home equity loans?

A: A type of loan under which equity is used as collateral by the borrower is known as a home equity…

Q: What is a mortgage payable?

A: Long-Term LiabilitiesLong-term liabilities are the obligations of the business that need not be paid…

Q: Explain Commercial Mortgage-Backed Securities (CMBSs)?

A: Commercial mortgage backed securities: These are fixed-income securities that are backed by…

Q: Give an example of a real estate mortgage and chattel mortgage. What are the obligations being…

A: The term mortgage refers to the loan taken by an individual for which the individual has put some…

Q: What does “assignment” mean and why would a lender want to assign a mortgage loan?

A: Mortgage assignments refer to a document that shows that a mortgage is transferred from the original…

Q: Which of the following statements about "alternative" sources of funds for commercial mortgages is…

A: The highly structured cash flow of commercial-backed securities is complex and servicers are needed…

Q: Which is the group of mortgage pools?

A: Mortgage pools: It is a group of mortgages held as security for mortgage backed security. In…

Q: Why is a mortgage a good debt?

A: Mortgage is typical loan given for purchase of home and ownership is reserved with financial…

Q: Why is it necessary for the bank to have the right to assign a mortgage to a third party (for…

A: Assignment of mortgage to a third party :  It is referred to as an agreement in loan obligations are…

Q: Explain the Federal National Mortgage Association (FNMA)?

A: The Federal National Mortgage Association (Fannie Mae) is a federal corporation that guarantees…

Q: Why do adjustable-rate mortgages (ARMs) seem to be a more suitable alternative for mortgage lending…

A: Price level adjustable mortgage (PLAM): Price level adjustable are mortgage loans where the…

Q: Explain why adjustable rate mortgages (ARMs) are considered to be a more suitable alternative for…

A: Adjustable rate mortgages : Also referred to as variable rate or floating rate mortgages, an…

Q: Which are the Minimum Mortgage Requirements?

A: Meaning of mortgage: Mortgage is nothing but an instrument of debt that the creditor is obliged to…

Q: What are the various types/methods of mortgages.

A: The various types of mortgages as follows: Fixed rate mortgage:  In a fixed rate mortgage, the money…

Q: What is a mortgage?

A: Mortgage : Mortgages  is referred to the long-term debts owed by the business that are secured with…

Q: Explain Assumption of Mortgage?

A: An individual can obtain loan by mortgaging its property to the lender. The property is said to be…

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 major difference between CMOs and the other mortgage-backed securities?

A: Investment in securities are traded on Secondary Market where buyer and seller purchase or sale…

Q: Explain Hybrid and Mortgage REITs?

A: Introduction: REITs enables a corporation to buy a real estate property using the collective…

Q: Which of the following are reasons that the actual prepayment rate on a specific mortgage pool…

A: PSA (Public Securities Association Standard Prepayment Model) is referred to as an assumed monthly…

Q: Explain The Federal Home Loan Mortgage Corporation?

A: Federal Home Loan Mortgage Corporation is a private corporation which is established with 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: Explain the disadvantages and dangers of Home Equity Loans.

A: The disadvantages of home equity loans:Higher rate of interest: The interest rates are typically…

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: Commercial and residential mortgage underwriting differ in several important ways. Which of the…

A: Commercial mortgage underwriting is for business purposes, whereas residential mortgage underwriting…

Q: Describe the types of risk associated with mortgages.

A: Mortgage-backed securities: A mortgage backed security is an obligation that represents a claim on…

Q: Name the major types of credit enhancement used for commercial-backed mortgage securities.

A: The commercial mortgage backed securities or CMBS are a class of mortgage backed securities that are…

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: Name the principal types of mortgage-related securities. What are the differences between them?

A: Principle type mortgage-related securities are those securities that are based on the mortgage as…

Q: Explain the terms of Classification of Mortgage Loans?

A: Mortgage Loan     Mortgage means transfer of interest to immovable property in order to secure the…